How Trump Children's Accounts Work: Key Details After Dell's Donation

Quelle: VIDEOELEPHANT (Glomex)

A tech billionaire and his wife are investing $6.25 billion to fund accounts for 25 million US children under ten years old. However, the question arises of how these so-called 'Trump accounts' are supposed to work. President Donald Trump included the establishment of these accounts in a comprehensive tax and spending package he signed in July. The law states that any child born between January 1, 2025, and December 31, 2028, can receive a Trump account that includes an initial deposit of $1,000 from the government. Trump stated that this would allow family members, employers, businesses, and generous donors to 'deposit money that will be invested and grow.' According to a fact sheet from the US Treasury Department, households of all income levels can open an account, including families with children under 18 years old. However, families with children under 18 years old are not eligible for the $1,000 government gift. Nevertheless, parents, friends, employers, and others can deposit up to $5,000 per child per year. Any person under 18 years old with a Social Security number can open an account starting from the program's launch on July 4, 2026. Michael Dell, CEO of Dell Technologies, and his wife Susan are donating funds to support children in zip codes where the median household income is below $150,000. The funds will be invested in a diversified, low-cost stock index fund that tracks the overall market and is managed by private investment firms. Once a child turns 18, they can withdraw the money. From that point on, a Trump account functions like a traditional retirement account, and withdrawals may incur significant tax penalties.