Michael Dell to put $250 in millions of children’s accounts

Michael and Susan Dell will give 25 million children a $250 deposit into individual investment accounts, they announced Tuesday, in one of the largest acts of philanthropy ever committed to Americans.

The $6.25 billion will go to investment accounts known as “Trump accounts” that were announced this year as part of President Donald Trump’s One Big Beautiful Bill Act. The government will provide $1,000 to children born between January 1, 2025 and December 31, 2028 under these plans.

The Dell money will extend this measure to children up to 10 years old, but only those who live in a ZIP code where the median household income is less than $150,000 will be eligible.

The accounts are to be created by the US government next year, although it has not yet clarified how exactly they will work, with details such as how to sign up and where the accounts will be based having yet to be announced.

“These deposits will reach the accounts of most children ages 10 and under born before the federal newborn contribution eligibility date,” the Dells said in a statement.

“Children over the age of 10 may also benefit if funds remain available after initial registration,” the Dell family said. “This is an incredibly practical and straightforward step to help families start saving today. »

The couple said they “believe this effort will expand opportunities, strengthen communities and help more children take ownership of their futures.”

People controlling Trump accounts will be able to deposit up to $5,000 per year until the beneficiary child turns 18. It will not be possible to withdraw accounts until the child reaches this age. Assets in the accounts will be allowed to grow tax-free, but when the money is withdrawn, beneficiaries will have to pay taxes on their earnings.

“These investment accounts are simple, secure and structured to grow in value through market returns over time,” the Dell family said.

Michael Dell founded Dell Technologies in 1984 and made his money selling computers directly to consumers rather than to retailers. Today, the Dells have a fortune of nearly $150 billion, according to Bloomberg Billionaires.