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Michael Dell to pump $6 billion into 'Trump
accounts' for newborns

Original Article

Posted By: sunset, 12/2/2025 9:23:50 AM

Michael Dell, founder and CEO of Dell Technologies, is contributing more than $6 billion to President Donald Trump's new accounts for newborn babies ‒ and the president wants others in the business world to follow the billionaire tech executive's lead. Dell is set to join Trump in the Oval Office on Tuesday, Dec. 2 to announce the donation, the White House confirmed exclusively to USA TODAY, a move expected to add $250 to about 25 million "Trump accounts." The money will be on top of the $1,000 in federal dollars that is acting as seed money to get the accounts started.

Comments:

Employers can contribute up to 2500 dollars per year, per employee's child. These contributions are excluded from the employee's gross income and are a tax-deductible business expense for the employer. Account withdrawals of employer donations will be taxed as ordinary income. Parents, family members, and friends would contribute using after-tax dollars, meaning these contributions do not lower their current taxable income. Account growth from individual donations will be taxed as long term capital gains. No penalty for early withdrawal if for education or first time home purchase.

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Reply 1 - Posted by: felixcat 12/2/2025 9:47:56 AM (No. 2036375)
Darn those oligarchs - sharing their earned wealth with strangers. Wonder how much in donations to charities Bernie and AOC contribute every year?
3 people like this.

Reply 2 - Posted by: singermom9 12/2/2025 10:07:05 AM (No. 2036387)
And the dems will complain it isn't enough. You will NEVER get a TY.
4 people like this.

Reply 3 - Posted by: padiva 12/2/2025 10:44:29 AM (No. 2036403)
Will dems parents refuse the money? Can there be a plan for children 1 to 17 even if the government doesn't give 1G?
1 person likes this.

Reply 4 - Posted by: DVC 12/2/2025 11:34:05 AM (No. 2036439)
Wow! That's pretty incredible.
4 people like this.

Reply 5 - Posted by: jdano 12/2/2025 11:45:54 AM (No. 2036451)
I have become a total pessimist. How soon will the Muslims have a bonanza with this.
1 person likes this.

Reply 6 - Posted by: ConservativeYankee 12/2/2025 11:50:45 AM (No. 2036454)
This is very generous, but we must get rid of the illegals: what about the newcomers and anchor babies?
2 people like this.

Reply 7 - Posted by: LadyHen 12/2/2025 11:50:50 AM (No. 2036456)
Okay, so is this a "education/buy first home/get started in life" account or simply an account that must be rolled into an IRA or you get smacked with a 10% early (before 59 1/2) withdrawal penalty? I have not seen this question addressed adequately. The plans start in July 2026. ALL children under 18 are eligible. A $5k cap per year regardless of the source, with the exception of charitable gifts. NO earned income is required unlike a ROTH. I have read ALL funds must be moved to an IRA at 18 which can then not be touched without a 10% penalty until 59 1/2. This does beg the question how do you use these funds for say a first home purchase without that 10% penalty hair cut PLUS paying taxes on any interest. They say all "after tax" contributions can be taken without tax penalty at 18+ but I don't know about that. Obviously all earned income from interest etc will be taxed at the appropriate rate. My only other gripe is they did not add a "CATCH UP PAYMENT" mechanism like on 401k that would allow those of us with kids that are not babies to add a bit extra to make up for the years before these accounts even existed.
2 people like this.

Reply 8 - Posted by: LadyHen 12/2/2025 12:07:15 PM (No. 2036475)
I answered some of my own questions. Qualified Expenses and Withdrawal Limits for Trump Accounts Qualified expenses for Trump Accounts, available once the beneficiary turns 18, include: Higher education expenses First-time home purchase (up to $10,000) Small business expenses Disaster recovery costs from federally declared disasters (up to $22,000) Birth or adoption expenses (up to $5,000) Disability-related costs Certain medical expenses Withdrawals for these purposes are exempt from the 10% early withdrawal penalty, even if taken before age 59½. However, earnings and non-individual contributions (e.g., from the government or employer) are subject to ordinary income tax upon withdrawal.
4 people like this.

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Posted by sunset 12/2/2025 9:23:50 AM Post Reply
Michael Dell, founder and CEO of Dell Technologies, is contributing more than $6 billion to President Donald Trump's new accounts for newborn babies ‒ and the president wants others in the business world to follow the billionaire tech executive's lead. Dell is set to join Trump in the Oval Office on Tuesday, Dec. 2 to announce the donation, the White House confirmed exclusively to USA TODAY, a move expected to add $250 to about 25 million "Trump accounts." The money will be on top of the $1,000 in federal dollars that is acting as seed money to get the accounts started.
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