President Donald Trump's accounts for babies just got a new chunk of change. The founder and CEO of Dell Technologies announced he is giving more than $6 billion to the newborn accounts.
Part of Trump's mega-legislation passed in July, the "Trump accounts" will come with a one-time $1,000 federal government investment. That seed money for babies born during Trump's current term, plus any other contributions, will grow with the performance of the stock market. Trump hopes contributions like Michael and Susan Dell’s, which will add an estimated $250 to 25 million accounts, will inspire other donations from businesses and philanthropists.
Parents won't have access to spend the money until their kid turns 18, at which point it will function like an individual retirement account (IRA), but families can add to the accounts long before then. Here is what we know so far about the Trump accounts:
More: Michael Dell to pump $6 billion into 'Trump accounts' for newborns
American babies born between Jan. 1, 2025, and Dec. 31, 2028, will be eligible for the one-time $1,000 payment from the government. There are no income restrictions for the government's payment. The babies also need a Social Security number.
