Centibillionaire Michael Dell and wife Susan make $6.25B pledge to seed Trump accounts

Michael and Susan Dell are committing $6.25 billion to help seed “Trump Accounts” for at least 25 million children, creating one of the largest private investments in American kids and a new planning curve ball for financial advisors.

The monumental pledge announced on Giving Tuesday will add $250 to eligible Trump Accounts for children age 10 and under who were born before January 2025 and live in zip codes where median income is under $150,000. Combined with a separate federal contribution of $1,000 for babies born between 2025 and the end of 2028, the program is designed to give millions of children a starter stake in the markets.

The Trump-branded accounts, created this year as part of President Donald Trump’s tax-and-spending package, are tax-deferred investment vehicles that must be invested in mutual funds or index funds that track broad equity benchmarks such as the S&P 500. Parents will be able to contribute up to $5,000 annually in after-tax dollars, with employers, philanthropists and others allowed to chip in as well.

Children will be locked out of withdrawals until age 18, when the accounts convert into retirement accounts. At that point, the money can be used for goals such as education, a first-home down payment, or launching a business, subject to standard IRA-style withdrawal rules and penalties.

For advisors, the structure echoes elements of 529 plans, Roth IRAs, and workplace plans, while adding yet another acronym to an already crowded shelf of tax-advantaged options.

The Tax Foundation, a tax policy think tank, has warned that Trump Accounts would “add another layer to an already overcomplicated savings account system in the United States,” arguing that “Trump Accounts do not offer much of an additional incentive to save” beyond the seed money and any employer contributions.

The Dells’ gift, made through their philanthropic efforts and coordinated with nonprofit Invest America, is explicitly aimed at broadening access beyond the newborn cohort covered by the Treasury contribution.

Michael Dell,  whose net worth stands at $148 billion according to the Bloomberg Billionaires Index, said in a CNN interview that they “feel super excited to be able to make a difference in millions of children’s futures and create opportunity, hope and prosperity for them.” Susan Dell framed the initiative as a long-term bet on human capital, saying that “investing in children and their future is really investing in all of our futures.”

Industry groups are already signaling support. The Investment Company Institute said it “applauds the significant philanthropic gift announced today to help kickstart Trump Accounts for millions of American children,” adding that the government’s own $1,000 deposits “will set these accounts to a great start and help ensure widespread of adoption of an investing mindset for American families.”

The group also reiterated its call for policymakers to maintain flexibility in setting Trump account-eligible investments and foster a competitive marketplace of providers.

For wealth managers and RIAs, the rollout of Trump Accounts is likely to raise practical questions once enrollment opens, currently targeted for 2026. Advisors will need to explain how the accounts interact with existing vehicles, whether parents should prioritize Trump Accounts over 529s or Roth IRAs, and how to allocate small balances that are fully in equities from day one.

For what it's worth, the White House Council of Economic Advisers has projected that a $1,000 deposit could grow to more than $5,800 over 18 years at a 10.3% annual return.