Dell Family's $6.25 Billion Gift Launches Children's Savings Accounts on July 4, 2026
Dell family's $6.25 billion gift funds tax-advantaged savings accounts for 25 million eligible U.S. children, available July 4, 2026, fostering financial security.
Stock Investing for Babies
The Free Press
Trump hails Dell family for $6 billion dollar contribution for accounts
Washington Examiner
Dell CEO donates over $6 billion to 'Trump accounts' for 25 million children
Washington Examiner
Overview
- Michael and Susan Dell have committed a historic $6.25 billion, the largest private gift to U.S. children, to significantly expand the federal 'Trump Accounts' savings program.
- This donation will fund 25 million additional tax-advantaged savings accounts for children under 18 with Social Security numbers, becoming available on July 4, 2026.
- Children born between 2025-2028 will receive an initial $1,000, while those under 10 (including pre-2025 births) will get $250 to kickstart their long-term savings.
- These tax-deferred investment accounts, primarily targeting low-income areas, aim to encourage long-term saving for education and retirement through simple, secure investments.
- Parents and relatives can contribute up to $5,000 annually until the child turns 18; funds remain untouched until then, potentially accumulating a seven-figure balance.
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Analysis
Center-leaning sources cover this story neutrally, presenting a comprehensive overview of the "Trump Accounts" and the Dells' contribution. They detail the program's mechanics and stated benefits, while also incorporating diverse expert opinions, including criticisms regarding cost, complexity, and comparison to existing savings options. This balanced approach informs readers.
"Kudos to them."
The Free Press"The idea is to give millions of children a head start on saving for the future."
NPR"Even so, proponents hope the new accounts will inspire a generation of children to gain financial literacy as they build wealth for adulthood."
Chicago Sun-Times"The Dells said their gift, which targets children age 10 and under, was intended to help seed those accounts and expand the savings opportunity to even more children."
BBC News"The Dells said they are encouraging others to join in by contributing funds to the accounts, ranging from other philanthropists and businesses to childrens' families and friends."
CBS News"The historic gift has little precedent, with few single charitable commitments in the past 25 years exceeding $1 billion, much less multiple billions."
ABC News"Even so, proponents hope the new accounts will inspire a generation of children to gain financial literacy as they build wealth for adulthood."
USA TODAY"The Dells say they "believe this effort will expand opportunity, strengthen communities, and help more children take ownership of their future.""
NBC NewsArticles (24)
Center (8)
FAQ
Children born between January 1, 2025, and December 31, 2028, who are U.S. citizens and have a Social Security number, are eligible for a Trump Account and the $1,000 government gift. Children under 18 (including those born before 2025) are eligible for the Dell family-funded accounts, with those under 10 receiving a $250 gift.
Up to $5,000 per year can be contributed to a Trump Account by parents, relatives, friends, employers, and nonprofits until the child turns 18. Employer contributions are capped at $2,500 per year and count toward the $5,000 limit.
When the child turns 18, the Trump Account must be converted into an IRA, and standard IRA withdrawal rules apply. The funds are intended to support long-term savings for education or retirement.
Yes, the money must be invested in eligible vehicles such as mutual funds or ETFs that track a qualified index, do not use leverage, and have annual fees under 0.1% of the balance.
The Dell family's gift funds 25 million additional tax-advantaged savings accounts for children under 18, expanding access to those in low-income areas and providing a $250 gift to children under 10, further promoting long-term financial security.
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