Michael Dell just made one of the largest charitable gifts in American history — and it's going directly into investment accounts for kids.
The $6.25 billion donation will fund "Trump Accounts" for 25 million children, putting $250 into each eligible account. Combined with the $1,000 government contribution for newborns, this could be the start of something significant for millions of American families.
What Are Trump Accounts?
Think of them as a hybrid between a traditional IRA and a 529 savings plan. Created under Trump's "One Big Beautiful Bill Act," these tax-advantaged accounts are designed to grow over time through investments in low-cost index funds.
Here's the deal: if your child was born between January 1, 2025 and December 31, 2028, the government will deposit $1,000 into their account. Parents can add up to $5,000 annually. The money gets invested in funds tracking the S&P 500 or similar indexes, with fees capped at 0.1%.
According to White House projections, if you max out contributions, a baby born in 2026 could have $303,800 by age 18 and nearly $1.1 million by age 28. Even without additional contributions, the $1,000 seed could grow to about $18,000.
The Dell Gift Expands The Program
The Dells' donation targets kids born before 2025 who wouldn't otherwise qualify for the government's $1,000. If your child is 10 or under and lives in a zip code where median income is less than $150,000, they're eligible for the $250 Dell contribution. That covers about 75% of US zip codes.
Should You Open One?
Financial experts are saying: take the free money, but think twice about contributing your own.
The Tax Foundation points out that existing 529 plans offer more flexibility and tax benefits. Urban Institute researcher Madeline Brown told CBS News that "the gift is the biggest part of this. It really is free money."
The accounts have restrictions — you can't withdraw until the child turns 18, and then the money rolls into an IRA. But for families who weren't going to save otherwise, this is a meaningful head start.
How To Sign Up
You can file IRS Form 4547 starting now. By mid-2026, you'll also be able to sign up through trumpaccounts.gov. Private contributions begin on July 4, 2026.
Is it perfect? No. But free money is free money. And if your kid ends up with a six-figure nest egg they didn't have to work for, that's not a bad start to adulthood.