Billionaires may be allowed to donate stock to Trump Accounts
USA Today • • business
Key Points:
- Trump Accounts, a federal savings program for children born between 2025 and 2028, will launch on July 5, 2026, with an initial $1,000 seed deposit from the government for eligible newborns.
- The program currently allows only cash investments in low-cost index funds focused on U.S. stocks, but there are discussions about permitting donations of company stock shares, potentially from wealthy individuals like Elon Musk or Jensen Huang.
- Approximately 5 million children are enrolled in Trump Accounts, which are owned by the child but managed by an adult until age 18, when the account transitions into a standard IRA with more flexible investment options.
- Contributions can be made by individuals, employers, governments, philanthropists, and charities, with an annual limit of $5,000, excluding the government seed money and certain other contributions; tax treatment varies depending on the source of funds.
- Major philanthropic pledges, including $6.25 billion from Michael and Susan Dell and targeted contributions from Ray and Barbara Dalio and Brad Gerstner, aim to expand the program's reach beyond newborns to children born before 2025 in lower-income areas.
