WASHINGTON — The newly created “Trump Accounts,” designed to equip all U.S. children with savings accounts that accumulate interest until they are adults, received a major boost from the CEO of Dell Technologies this week — providing an extra cushion to a novel program partially spearheaded by Utah Rep. Blake Moore.
Michael and Susan Dell announced on Tuesday they would be donating $6.25 billion to seed some Trump Accounts, which were created in President Donald Trump’s massive tax bill earlier this summer.
The concept was heavily pushed by Moore in separate legislation, and the Utah Republican had a major role in crafting what he calls “monumental policy.”
“Every parent, every grandpa and grandma can now look and say, ‘I can get my grandkid this little toy or something,’ maybe that’s going to continue to happen, but there is a new option and another way for them to be able to invest and have a lasting legacy,” Moore said from the White House during the Dell announcement. “As a dad of four kids, seeing kids in my neighborhood, for them to have that opportunity is something that… it makes everything worthwhile.”
The pilot program would allow any parent to open a Trump Account for their child. For children born between Jan. 1, 2025, and Dec. 31, 2028, a one-time credit of $1,000 from the federal government will be deposited. Parents, friends, and private organizations can then contribute up to $5,000 a year until the child turns 18.
Children who are eligible to receive additional money from the Dell family would see another $250 added to their accounts. That money will be available to children under the age of 10 who live in ZIP codes where the median income is less than $150,000.
The accounts would then be administered by a bank or other financial institution and be overseen by the Treasury Department.
To be eligible for an account, the child must be a U.S. citizen with a Social Security number provided by at least one of the parents. The Social Security number must be considered “work eligible” in order for the account to be approved.
After the child is 18, the accounts will be treated like a traditional Individual Retirement Account, subject to existing rules and earned income requirements, according to the White House. Any withdrawals before the account holder turns 60 years old may be subject to an additional 10% tax, with exceptions for higher education expenses or first home purchases.
The accounts are expected to become available by next July.