Michael and Susan Dell pledged $6.25 billion on Tuesday to seed investment accounts for 25 million American children, expanding a federal program known as Trump Accounts that provides tax-advantaged savings for minors under 18.
The donation, announced on Giving Tuesday during a White House event with President Donald Trump, targets children age 10 and younger born before Jan. 1, 2025, who live in ZIP codes with median family incomes of $150,000 or less and do not qualify for the program’s initial $1,000 government deposit. Each eligible child will receive $250 to encourage families to activate the accounts and invest in the stock market.
The Trump Accounts program, formally called Invest America accounts, became law in July 2025 as part of the Working Families Tax Cuts Act, also referred to as the One Big Beautiful Bill. It aims to build long-term financial security for children by allowing investments in broad U.S. equity index funds, such as those tracking the S&P 500, with low fees not exceeding 0.10 percent annually.
Eligibility extends to any U.S. child under 18 with a valid Social Security number. For newborns specifically, U.S. citizens born between Jan. 1, 2025, and Dec. 31, 2028, qualify for a one-time $1,000 deposit from the U.S. Treasury Department, which does not count against annual contribution limits. This seed money must be elected by parents or guardians, and the account opened before the child turns 18.
Parents or legal guardians must establish and manage the accounts until the child reaches adulthood. Contributions can come from family members, friends, employers or qualifying charitable organizations. The annual limit is $5,000 per child from individuals and employers combined, with cost-of-living adjustments starting after 2027. Employers may contribute up to $2,500 per employee or dependent under 18, and these amounts can be made pre-tax through cafeteria plans. Nonprofits and government entities, like states or localities, face no limits on contributions for groups of children, such as all born in a given year.
The funds grow tax-deferred for the first 18 years. Investments are restricted to unleveraged mutual funds or exchange-traded funds that mirror the overall U.S. stock market. No withdrawals are permitted before age 18, except for trustee-to-trustee transfers to another brokerage or rollovers to an ABLE account in the year the child turns 17. Upon death, the account passes to beneficiaries.
At age 18, the account converts to a traditional individual retirement account, subject to standard IRA rules. The account holder gains control and may continue contributing based on earned income limits. Withdrawals for qualified purposes — such as higher education, a first-time home down payment up to $10,000 or starting a small business — avoid the 10 percent early withdrawal penalty before age 59½. Non-qualified distributions incur ordinary income tax plus the penalty.
To claim a Trump Account, parents or guardians file IRS Form 4547, a one-page document requiring the child’s Social Security number, home address and basic details. This form also elects the $1,000 Treasury contribution if eligible. Filings can occur anytime, including with the 2025 federal income tax return. Starting mid-2026, elections will be available online at trumpaccounts.gov. After submission, the Treasury or its agent will mail activation instructions beginning in May 2026, involving an authentication process to finalize the account opening.
No contributions, including the government seed, can be made until July 4, 2026, coinciding with the 250th anniversary of U.S. independence. Initial accounts will be held with the Treasury’s designated financial agent, but families may later roll over the full balance to a preferred brokerage via trustee-to-trustee transfer.
The program includes safeguards against fraud, such as requiring valid Social Security numbers and limiting the pilot $1,000 deposits to eligible newborns. Automatic enrollment is under consideration to boost participation, particularly among low- and moderate-income families, according to analyses from groups like the Aspen Institute.
Michael Dell, founder and CEO of Dell Technologies with an estimated net worth of $148 billion, described the initiative during the White House announcement as a way to foster generational prosperity. “We believe that if every child can see a future worth saving for, this program will build something far greater than an account. It will build hope and opportunity and prosperity for generations to come,” Dell said.
In a statement from the Michael and Susan Dell Foundation, the couple emphasized the program’s potential. “Beginning next year, the U.S. Treasury will contribute $1,000 to the Invest America account of every baby born on or after January 1, 2025. This automatic $1,000 deposit by the federal government gives every American newborn a transformative head start,” the statement read. “Through our charitable funds, we are thrilled to be contributing $6.25 billion to seed 25 million additional accounts with $250 each. These deposits will reach the accounts of most children age 10 and under who were born prior to the qualifying date for the federal newborn contribution. Children older than 10 may benefit, too, if funds remain available after initial sign-ups.”
President Trump, who joined Dell and lawmakers at the event, highlighted the accounts as a unique financial tool. “Trump Accounts will be the first, I guess you could say, real trust funds for every American child,” Trump said. He recounted a conversation with the Dells: “Michael and Susan came to see me… they said, you know, this is an idea. I said, ‘I think it sounds so good and so unique. But that is why he has been so successful and they have been so successful in life and in business, because they’re unique.’”
The Dell gift marks one of the largest single charitable commitments to U.S. children, surpassing many past donations in scale. It builds on the Dells’ history of philanthropy, including $3 billion over 26 years focused on education, health and financial stability. The pledge partners with Invest America, a nonprofit advocacy group founded by investor Brad Gerstner, which pushed for the accounts’ creation.
Trump Accounts resemble existing vehicles like 529 plans for education savings or Roth IRAs for retirement, but with broader uses and a government seed for a limited birth cohort. Unlike 529s, which offer state tax deductions and flexibility for qualified education expenses, Trump Accounts emphasize stock market growth and convert to IRAs at 18, potentially yielding up to $1.9 million by age 28 if fully funded and untouched, per Council of Economic Advisers estimates assuming average market returns.
For Southern Maryland families, the program offers a straightforward entry into investing, aligning with regional efforts to promote financial literacy. Calvert, Charles and St. Mary’s counties, with median household incomes ranging from about $98,000 to $112,000 based on recent Census data, fall well below the $150,000 threshold for the Dell $250 incentive. Local banks and credit unions, such as Shore United Bank in Solomons or Southern Maryland Electric Cooperative’s financial wellness programs, may integrate employer contributions, providing pre-tax benefits for workers at Patuxent River Naval Air Station or nearby manufacturers.
Experts note the accounts’ potential to teach compounding interest early. A $1,000 seed at 7 percent annual return could grow to $3,400 by age 18 and $15,000 by age 30, according to basic financial models from Morningstar. However, participation hinges on awareness and ease of access; Treasury officials plan outreach through tax filings and community partners.
The program’s rollout follows months of planning since the bill’s passage. Treasury Secretary Scott Bessent described it as entering “a new age of capitalism and market interest,” emphasizing ownership in the economy. While the pilot ends after 2028 births, advocates hope for expansion.
Families in Southern Maryland can prepare by gathering children’s Social Security information now, as sign-ups approach. The IRS will release detailed guidance on Form 4547 by early 2026, and trumpaccounts.gov will host tutorials. For comparison, local financial advisors through the Maryland Financial Education Network offer free sessions on similar tools like custodial accounts.
This initiative comes amid broader tax reforms in the Working Families Tax Cuts Act, which also expanded child tax credits and employer incentives. As the program launches, it positions Southern Maryland’s roughly 40,000 households with children under 18 — per 2023 estimates — to benefit from both federal seeds and private boosts like the Dells’.