What you need to know about the ‘Trump accounts’ and Michael and Susan Dell’s $6.25 billion donation

President Donald Trump formally introduced his “Trump Count” program Tuesday with a twist: A multibillion-dollar donation from Michael and Susan Dell would expand the program’s eligibility to more children.

Investment accounts could help tens of millions of American families save for their children. But critics say they don’t go far enough to solve America’s savings problem.

Here’s what you need to know.

The federal government will contribute $1,000 to individual accounts for children born between January 1, 2025 and December 31, 2028.

The family and others can make annual contributions to the account starting July 4, 2026, as long as their combined sum does not exceed $5,000 per year, although nonprofits can give more. Employers can contribute up to $2,500 of this amount.

The money must be invested in a low-cost, diversified U.S. stock index fund or equivalent.

To be eligible, the baby must be a citizen born in the United States and both parents and the baby must have a Social Security number.

Parents and guardians will be able to file a new form online with the IRS (Form 4547) to establish a “Trump account” for their child.

Beginning in May 2026, the Treasury Department will follow up with those who have applied to complete the account opening process.

The Dells’ donation will fund $250 for many children ages 10 and under born before January 2025, increasing the number of children receiving funding to open an account.

Eligible children live in ZIP codes where the median income is less than $150,000. The giveaway is expected to reach children in 75 percent of U.S. ZIP codes, according to Invest America, the nonprofit organization behind the initiative.

If additional funds remain after initial registrations, children over the age of 10 may be eligible. The Dells expect investment accounts to be available to at least 25 million children.

Dell funds will be distributed to individual accounts by the Treasury Department.

No withdrawals can be made until the child is 18 years old. Taxes on growth are deferred until the money is withdrawn.

The account is for expenses related to higher education or “post-secondary degrees,” buying a home, or starting a small business.

What are the advantages and disadvantages?

Supporters gave the program high marks for its universality and limited number of hurdles to jump through for enrollment. It also gives every American child a little more financial security.

But critics point out that it is a regressive benefit, giving money to everyone regardless of their needs.

While parents may welcome the prospect of “free money” as a savings vehicle, “Trump accounts” add even more complexity to an already complex web of savings account options for families – each with their own eligibility and withdrawal rules, contribution limits and tax treatment.

The Tax Foundation said existing 529 accounts offer more flexibility and tax benefits than “Trump accounts.”