Michael and Susan Dell pose for photos in New York on November 26. The couple said they would donate $6.25 billion to the investment accounts of 25 million American children.
Frank Franklin II/AP
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Frank Franklin II/AP
Michael and Susan Dell to donate $6.25 billion to fund investment accounts for 25 million American children, Under a plan unveiled Tuesday. Money from his charitable fund will help promote the “Trump accounts” introduced into law in July.
This gift will put $250 into each eligible child’s account, intended to grow over time through investments in low-cost stock funds that track market indices.
“The idea is to give millions of kids a head start on saving for their future,” Michael Dell told NPR. “And we know that when kids have accounts like this, even with modest amounts, they have better outcomes in life.”
Michael Dell is the CEO of Dell Technologies.
Here’s a brief guide to the Accounts and Dales scheme:
Who will get Dale’s gift?
To receive the Dell gift, children must have a Social Security number and be 10 years of age or younger and born before January 1, 2025.
Dell told NPR they’re trying to reach kids who need the money most, which is why the gifts target recipients who live in ZIP codes where the median income is less than $150,000.
Dales says this gift will reach approximately 80% of eligible age groups, in 75% of U.S. zip codes.
Parents must create a “Trump Account” to receive gifts
As part of the One Big Beautiful Bill Act signed into law last summer, every American child born from this year to 2028 is automatically in line to receive a Trump account funded with $1,000 from the US Treasury.
All children under 18 who have a Social Security number can have an account — but they don’t get the initial $1,000.
Dell gifts are meant to help children who are too old to receive Treasury payments.
“We are targeting with this gift children who are 10 years old and younger and are not part of the federal program,” Dale said.
Susan Dell encouraged parents to “mark July 4, 2026 on your calendars, that’s when they can claim accounts for their children.”
How do Trump accounts work?
The money in Trump accounts will grow over time, using contributions to invest in low-cost stock funds that track market indices. When children turn 18, they can either convert the money into a retirement account or use the money for education, buying a house or starting a business.
Parents and others can contribute up to $5,000 annually until the child turns 18.
Personal finance experts say the Trump accounts are an amalgam of existing plans. And the potential benefits will vary widely depending on how much a family can contribute.
According to the White House, the maximum contribution to a Trump account could be worth about $1.1 million by the time the beneficiary turns 28. If no additional contributions are made, its value could be much less: $18,100.
Essential details about how the Trump accounts will be managed are unknown. “At this time, it is unclear who will open the account or where it will be housed,” Charles Schwab’s recent update said.
The investment bank recommends that families consult a tax or financial advisor if they are interested in this plan.
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