Michael Dell is gifting $250 to the first 25 million children who open a Trump Account. The $6.25 billion incentive is the largest private commitment to a government savings program.
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The Trump administration opened registration Tuesday for a new federally-backed investment account for children, and Michael Dell is offering $250 to the first 25 million children who sign up. The billionaire CEO and his wife will deposit the cash directly into each Trump Account, the White House said. At $250 per child, Dell's total commitment reaches $6.25 billion if all slots are filled.
Trump Accounts are tax-advantaged savings vehicles backed by a government guarantee on principal. The guarantee covers 100% of contributions up to $5,000 per year, meaning parents cannot lose principal even if the investments decline. Above the principal, market gains are not guaranteed; the account balance can fluctuate. When withdrawn for qualified expenses such as education or a first home purchase, contributions are free of capital gains taxes. A 10% penalty plus ordinary income tax applies to non-qualified withdrawals. The structure distinguishes Trump Accounts from 529 plans, which have no principal guarantee, and from standard brokerage accounts, which offer no tax advantages.
Parents can register using a Social Security number and the child's birth certificate information. Accounts are available for any child under 18 who is a U.S. citizen or resident. No minimum initial contribution is required to open an account. Annual contribution limits are set at $10,000 per child, with the government guarantee applying to the first $5,000 of contributions each year. Investment options include a suite of index funds managed by the Federal Retirement Thrift Investment Board, with annual fees capped at 0.05%.
The Dell gift applies on a first-come, first-served basis. The first 25 million children to complete registration will receive a $250 deposit within 30 days. The White House said the incentive is designed to boost participation among lower-income households that might not otherwise open an account. No registration deadline has been set beyond the cap of 25 million accounts. Parents can apply immediately at the Trump Accounts website.
The financial services industry is watching which firms will administer the accounts. The Treasury Department will release a request for proposals in the coming months, officials said. Contracts will be awarded based on fee structure and technology. Customer service capabilities will also be evaluated. Brokers already managing government-sponsored savings programs, such as 529 plans or the Thrift Savings Plan, are expected to bid. The winning firms will gain access to millions of new accountholders, generating recurring revenue from asset management fees and potential cross-selling, the Treasury Department said.
The program has drawn sharp criticism in Congress. Several Republican senators have raised concerns about the cost, which the nonpartisan Tax Foundation estimates at $300 billion over a decade. Supporters argue the accounts provide a wealth-building tool for families that lack access to tax-advantaged investment vehicles. Funding comes from general revenue and is not tied to Social Security or Medicare. Proponents say the accounts could reduce future reliance on federal assistance programs by encouraging long-term savings from childhood.
Dell's $6.25 billion gift is the largest single private commitment to a government savings program in U.S. history, the White House said. Registration opened Tuesday at trumpaccounts.gov. Parents can begin the application process immediately.
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