By Morgan Sweeney | The Center Square
(The Center Square) – The Tuesday after Thanksgiving was a day for charitable giving and this Tuesday, Michael and Susan Dell pledged to donate a total of $6.25 billion to millions of American children.
The founder of Dell Technologies and his wife will contribute $250 into what have been dubbed the “Trump Accounts” of 25 million American children. Trump Accounts are tax-deferred savings accounts for children under the age of 18. The parents of children born between Jan. 1, 2025, and Dec. 31, 2028, can also elect to have the account seeded by a one-time $1,000 contribution from the federal government.
The Dells’ gift will go to 25 million American children aged 10 and under living in zip codes with a median income of $150,000 or less – who don’t qualify for the $1,000 from the government.
“We believe that the smartest investment that we can make is an investment in children and [the Invest America Act] has created a platform for families and friends and communities and companies and philanthropists to contribute to these accounts to create a savings and opportunity and hope and prosperity for tens of millions of children in this country,” Michael Dell said Tuesday, when the White House publicly announced the Dells’ donation.
Dell believes other Americans with similar resources will follow suit and make contributions of their own.
“I have spoken with a number of other wealthy Americans, philanthropists, and we are confident that others will join us, because we all understand the incredible impact that a gift like this can have on the lives of young Americans,” Dell added.
The White House has noted that parents or guardians are responsible for setting up and managing Trump Accounts for their children until they turn 18. Children, parents or guardians, grandparents, family members, friends, employers and qualifying charitable organizations and government entities can all contribute to the accounts up to an annual contribution limit of $5,000. In most cases, funds cannot be withdrawn until the child comes of age.
Trump Accounts are to be invested in “broad U.S. equity funds that track the overall U.S. stock market,” and so those seeded by the Dell contribution “should grow to be worth many thousands of dollars by the time the child is 18,” according to President Donald Trump.
“We think it’s going to be something really unique and really special,” the president said Tuesday.