What to Know About Trump Accounts for Children and Eligibility After Dell Donation

Next year, Michael and Susan Dell plan to move $250 into the new Trump accounts of millions of children under 10. You’ll need to live in the right ZIP code.

On Tuesday, Michael Dell of Dell Technologies and his wife, Susan, announced that they were donating $6.25 billion to benefit roughly 25 million children, through the vehicle of the new Trump accounts created in this year’s tax bill.

It is one of the largest donations ever to go straight to Americans. Many of the details are still being hammered out, but we will do our best to answer your questions about whether a child in your family — or you yourself, precocious reader — may be eligible.

What is a Trump account?

This year’s tax bill created a new type of investment account for children, known as the Trump account. You, your employer and others can deposit money (within certain limits), and it grows tax-free, as it would in an individual retirement account.

Who is eligible to open an account?

Any child under 18 who has a Social Security number.

When can I open one?

Here’s how the White House explained it in an FAQ it published on Tuesday:

“Use IRS Form 4547 to make the election to establish an initial Trump Account for the exclusive benefit of a child who is eligible; also use Form 4547 to make an election for the $1,000 pilot program contribution from the U.S. Treasury to the child’s Trump Account if they are eligible for the contribution. After the election is made, beginning in May 2026, Treasury or its agent will send information to the individual who made the election to activate the account through an authentication process and complete the opening of the initial Trump account.”

How can I open one?

The Investment Company Institute, a trade organization for brokerage firms and similar entities, has asked that the Treasury Department allow for competition, as opposed to designating one firm as the sole place where people can open accounts.

On Tuesday, the White House announced that at first, accounts would live with “Treasury’s designated financial agent,” though it’s not yet clear whom or what that is.

Eventually, you will be able to roll over your account to the brokerage firm of your choice.

How do I know whether my child is eligible to get the $250 from the Dells?

For now, the money will go to children who were born in 2016 through 2024. They also have to live in ZIP codes where median household incomes are below $150,000 per year.

The Dell Foundation does not yet have a tool that potential recipients can use to determine if their neighborhood qualifies. But if you enter your ZIP code on the website censusreporter.org and scroll down the page, you can get a rough sense of where you might land by viewing the most recent household income data.

How will the Dell money get into a Trump account?

You’ll need to open a Trump account before you can get the money from the Dells. They are working with the Treasury Department to make things seamless after that. They intend to have their $250 deposit be automatic, so account holders do not have to opt in or request the money.

What about the $1,000 that the government will deposit into some accounts — can I get that too?

No. The government will make a one-time contribution of $1,000 to each account for U.S. citizens born between Jan. 1, 2025, and Dec. 31, 2028. The money will come via a tax credit, and there is no income restriction with this deposit.

The Dell deposit is for older children.

Can I take the money out right away?

No. Rollovers aside, you generally can’t take it out until a child is 18, though there are exceptions if a child dies and for certain transfers from ABLE accounts, which are for disabled individuals. Beyond that, withdrawal rules apply that are similar to the ones for individual retirement accounts.

What are the investment options?

You must invest in diversified, low-cost U.S. stock index funds.

How can I learn more about Trump accounts?

Our colleague Ann Carrns wrote an explainer this summer. The brokerage firm Charles Schwab has a good primer on its website as well. And you can find the White House FAQ here.

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