President Donald Trump stood alongside philanthropists Michael and Susan Dell on Tuesday to mark what the White House called one of the largest direct investments ever made in American families: a $6.25 billion charitable commitment from the Dells to fund Trump Accounts, a new federal child savings program.
Trump Accounts were created through the Working Families Tax Cuts Act and are open to every U.S. citizen born between January 1, 2025, and December 31, 2028. Each account launches with a one-time $1,000 seed contribution from the U.S. Treasury, and families, grandparents, employers, and qualifying charities can add up to $5,000 a year on top of that.
The Dell family’s pledge will direct an extra $250 to accounts held by the first 25 million American children age 10 and under who live in ZIP codes with median household incomes below $150,000. The White House said the gift gives low- and middle-income children a stronger financial foundation from birth. According to the Trump Accounts program details, if an account is fully funded from birth and left untouched, it could grow to as much as $1.9 million by the time a child turns 28.
The accounts are invested exclusively in broad U.S. stock-market index funds, such as those tracking the S&P 500, and must carry annual fees no higher than 0.10 percent. No withdrawals are allowed before age 18, at which point the account converts to something that functions like a traditional IRA. After that, standard IRA rules apply, including a 10 percent penalty on early withdrawals before age 59 and a half, with exceptions for higher education costs and first home purchases.
Parents and guardians can file IRS Form 4547 at any time, including with their 2025 tax return, to establish an account and claim the $1,000 Treasury contribution for eligible children. Contributions to the accounts will be accepted starting July 4, 2026, and an online enrollment option at trumpaccounts.gov is expected to launch in mid-2026. Employers can also offer pre-tax salary contributions of up to $2,500 per year per employee’s dependent child through a cafeteria plan.
The next step for families is filing Form 4547 to lock in eligibility for the government seed money. Treasury will send account activation details beginning in May 2026. Share your thoughts on the program in the comments below or on social media.
