On Tuesday, Michael Dell of Dell Technologies and his wife, Susan, announced that they were donating $6.25 billion to benefit roughly 25 million children, through the vehicle of the new Trump accounts created in this year’s tax bill.
It is one of the largest donations everto go straight to Americans. Many of the details are still being hammered out, but we will do our best to answer your questions about whether a child in your family — or you yourself, precocious reader — may be eligible.
What is a Trump account?
This year’s tax bill created a new type of investment account for children, known as the Trump account. You, your employer and others can deposit money (within certain limits), and it grows tax-free, as it would in an individual retirement account.
Who is eligible to open an account?
Any child under 18 who has a Social Security number.
When can I open one?
No earlier than the middle of 2026.
How can I open one?
It’s not clear yet. The Investment Company Institute, a trade organization for brokerage firms and similar entities, has asked that the Treasury Department allow for competition, as opposed to designating one firm as the sole place where people can open accounts.
How do I know whether my child is eligible to get the $250 from the Dells?
For now, the money will go to children who were born in 2016 through 2024. They also have to live in ZIP codes where median household incomes are below $150,000 per year.
The Dell Foundation does not yet have a tool that potential recipients can use to determine if their neighborhood qualifies. But if you enter your ZIP code on the website censusreporter.org and scroll down the page, you can get a rough sense of where you might land by viewing the most recent household income data.
How will the Dell money get into a Trump account?
You’ll need to open a Trump account before you can get the money from the Dells. They are working with the Treasury Department to make things seamless after that. They intend to have their $250 deposit be automatic, so account holders do not have to opt in or request the money.
What about the $1,000 that the government will deposit into some accounts — can I get that too?
No. The government will make a one-time contribution of $1,000 to each account for U.S. citizens born between Jan. 1, 2025, and Dec. 31, 2028. The money will come via a tax credit, and there is no income restriction with this deposit.
The Dell deposit is for older children.
Can I take the money out right away?
No. You can’t take it out until a child is 18. After that, withdrawal rules apply that are similar to the ones for individual retirement accounts.
What are the investment options?
You must invest in diversified, low-cost U.S. stock index funds.
How can I learn more about Trump accounts?
Our colleague Ann Carrns wrote an explainer this summer. The brokerage firm Charles Schwab has a good primer on its website as well.
Ron Lieber has been the Your Money columnist since 2008 and has written five books, most recently “The Price You Pay for College.”
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