:max_bytes(150000):strip_icc()/GettyImages-2150249232-717c4444e7f64819aab61d01c0a14ebb.jpg "Michael Dell Donates Billions To Trump Accounts For Children—Here’s Who Qualifies For The 0 Benefit")
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Key Takeaways
- Michael and Susan Dell’s $6.25 billion donation will seed 25 million Trump Accounts with $250 for eligible children.
- Children 10 years old or younger, born before 2025, and residing in ZIP codes with a median household income of under $150,000 may be eligible.
- Although Trump Accounts offer some tax benefits, other accounts, such as brokerage accounts, may be more flexible and tax-efficient.
More children could be eligible for savings accounts after a charitable donation from one of the richest people in the country.
Michael Dell, founder and CEO of Dell Technologies (DELL), and his wife, Susan Dell, plan to donate $6.25 billion to fund Trump Accounts for children, according to a statement released Tuesday. The money will finance 25 million accounts and provide $250 of seed funding per account.
“We’re making a $6.25 million investment in America’s kids through our charitable funds,” Michael Dell said in a prepared statement. “We’ve seen what happens when a child gets even a small financial head start; their world expands.”
Trump Accounts—which were first established by the Trump administration’s 2026 federal tax law, the One Big Beautiful Bill Act (OBBA)—are a type of investment account available to children below the age of 18.
The accounts are not yet available but will be starting in 2026, according to Carl Breedlove, Lead Tax Research Analyst at H&R Block. Additionally, taxpayers will not be eligible to make contributions until July 4, 2026.
Details regarding where the account is opened and held have yet to be disclosed, but the Trump Administration just launched a website with information about the accounts. More updates are expected on December 17.
Who Will Receive The $250?
Under the OBBA, babies born from January 1, 2025 through December 31, 2028 will have $1,000 deposited into their Trump Account by the federal government.
Dell’s funding is, in part, intended to provide money to those not eligible for the seed money provided by the federal government.
To be eligible for the $250 benefit, a child must be 10 years old or younger, born before Jan. 1, 2025, and reside in select zip codes. According to a New York Times report, funding will be available to those in ZIP codes where the median household income is below $150,000.
To get an idea of whether your child could qualify, you can enter your zip code into the site Census Reporter and find your area’s median income based on data from the Census Bureau. According to Invest America, the nonprofit behind the advocacy movement for the Trump accounts, 80% of kids under 10 could qualify.
What This Means For You
If you have a child bellow the age of 10, you may qualify for the $250 benefit. However, there still remains uncertainty about where parents will be be able to manage these accounts. In the meantime, you can try to see if your zip could would qualify.
How Do Trump Accounts Work?
Trump Accounts offer some tax benefits, but they also come with limitations.
These accounts have a $5,000 annual contribution limit, which is indexed for inflation, and children cannot access the account until they’re at least 18 years old. After a child turns 18, the account is converted to a traditional IRA.
Contributions are made post-tax (unless an employer makes those contributions) and investment gains are taxed at ordinary income tax rates.
For some parents, these accounts may not be as beneficial as opening up a brokerage account for their child, as investment options in Trump accounts are also restricted to U.S. stock mutual funds or ETFs.
With a brokerage account, contributions are also made post-tax, but investment gains may qualify for a lower tax rate due to the long-term capital gains rate. Plus, brokerage accounts typically don’t have restrictions on when you can withdraw money.
One key advantage of the Trump Accounts is that parents, employers, nonprofits, and the government can make contributions. Employers, governments, and charities can contribute up to $2,500 tax-free. And companies, such as Dell Technologies, have already agreed to fund these accounts for their employees, providing $1,000 per account.
Update, Dec. 2, 2025: This article has been updated to add information released by the Trump Administration after publication, including a link to a website for the accounts.
