On Tuesday, Michael Dell of Dell Technologies and his wife Susan announced they would donate $6.25 billion to benefit about 25 million children through the new Trump accounts created in this year's tax law.
It is one of the largest donations ever made directly to Americans. Many details are still being worked out, but we will do our best to answer your questions about whether a child in your family – or you, dear reader – might be eligible.
What is a Trump Account?
This year's tax law created a new type of investment account for children, called the Trump account. You, your employer, and others can contribute money (within limits) and it will grow tax-free, just as an individual retirement account would.
Who is eligible to open an account?
Any child under 18 who has a Social Security number.
When can I open one?
Here's how the White House explained it in an FAQ published Tuesday:
“Use IRS Form 4547 to make an election to establish an initial Trump account for the exclusive benefit of an eligible child; also use Form 4547 to make an election for the U.S. Treasury Department's $1,000 Pilot Program contribution to the child's Trump account if he or she is eligible for the contribution. After the election, beginning in May 2026, the Treasury Department or its representative will send information to the Person who made the choice to activate the account through an authentication process and complete the opening of the first Trump account.”
How can I open one?
The Investment Company Institute, a trade group for brokerage firms and similar businesses, has called on the Treasury Department to allow competition rather than designate one firm as the sole place where people can open accounts.
On Tuesday, the White House announced that the accounts would initially remain with the “designated financial agent of the Treasury Department,” although it is not yet clear who or what that is.
Finally, you can transfer your account to the brokerage firm of your choice.
How do I know if my child is eligible for the $250 from the Dells?
The money will initially go to children born in 2016 until 2024. They must also live in zip codes where the median household income is less than $150,000 per year.
The Dell Foundation does not yet have a tool to help potential recipients determine whether their neighborhood qualifies. However, if you enter your zip code on the website censusreporter.org and scroll down the page, you can get a rough idea of where you might end up based on the latest household income data.
How does the Dell money get into a Trump account?
You must open a Trump account before you can receive the money from the Dells. They are working with the Treasury to make things smooth after that. They intend to make the $250 deposit automatically so that account holders do not need to log in or request the funds.
What about the $1,000 the government will deposit into some accounts – can I get that too?
No. For U.S. citizens born between January 1, 2025 and December 31, 2028, the government will make a one-time contribution of $1,000 to each account. The money is provided through a tax credit, and there is no income limit on this deposit.
The Dell deposit applies to older children.
Can I withdraw the money immediately?
No. Aside from rollovers, you generally can't withdraw it until the child turns 18. However, there are exceptions when a child dies and for certain transfers from ABLE accounts intended for people with disabilities. In addition, similar payout rules apply as for individual retirement accounts.
What investment options are there?
You need to invest in diversified, low-cost US stock index funds.
How can I learn more about Trump accounts?
Our colleague Ann Carrns wrote an explanatory film this summer. The brokerage firm Charles Schwab also has a good introduction on its website. And the White House FAQ can be found here.