Thanks to the Dell Family for Helping Set Up Trump Accounts

Trump Accounts: Building Financial Foundations and Economic Literacy for America’s Children

As one of the pioneers in wealth management education in the United States over the past 30 years, this is a moment that deserves recognition.

At a time when economic uncertainty and rising costs continue to challenge families nationwide, one truth remains clear: the earlier we invest in our children, the stronger our nation’s future becomes.

As one of the first Wall Street Investment Advisors and lawyers to publish and speak on the issue of 529 College Savings Plans in 2000-2001, I realize that these rules are still in the works being codified, but this paper shows the general structure and policies that may be in effect within the next few months.

There will be grandparents out there who will make their small grandkids millionaires just by funding these accounts early with a few thousand dollars.

For example, a grandparent could contribute $5,000 per year from ages 0 through 5, for a total of $25,000 — as long as no one else contributes during those years. Trump Accounts have a single annual cap of $5,000 per child per year from any sources, and that cap applies to all contributors combined.

While policymakers continue to debate solutions and institutions refine their strategies, there are moments when private leadership steps forward to create meaningful, lasting change.

This is one of those moments.

Michael and Susan Dell have pledged about $6.25 billion to support “Trump Accounts,” a sweeping effort to help more American families build savings for the future.

The funding is expected to seed accounts for roughly 25 million children, or about $250 per eligible child, giving millions a financial starting point.

It’s a remarkable commitment—one of the largest philanthropic efforts in decades tied to a government-backed savings initiative—and reflects a broader push to expand opportunity for the next generation.

The work supported by Michael Dell, Susan Dell, and the Dell family in advancing financial accounts for children deserves national recognition. Their efforts are not merely charitable — they are structural.

They are helping to build a framework that gives millions of children a tangible stake in their future from the very beginning of life.

Following the passage of the One Big Beautiful Bill Act (OBBBA) [Public Law 119-21] in 2025, the federal government established a new framework for children’s investment accounts — often referred to as “Trump Accounts.”

These accounts represent a significant evolution in how families can build long-term financial security for their children, combining public policy, tax structuring, and private support into a scalable national system.¹

Global Growth & Opportunites Ahead

Looking forward, global equity markets are poised for substantial expansion over the next decade, driven by a world population approaching 8 billion people and the rapid rise of global consumer demand.

With the United States representing only about 4% of the global population, the primary engine of future growth lies abroad.

As billions of consumers enter the middle class and gain access to financial systems, global investors will increasingly allocate capital into U.S. securities and funds, recognizing their scale, innovation, and institutional strength.

In recent years, approximately 30–35% of S&P 500 revenues have been generated overseas. This figure may rise toward 50% in the coming years, fueled by trillions of dollars in emerging market GDP growth and the presence of roughly 4 billion people under the age of 40.

Many leading companies — such as Apple, Coca-Cola, McDonald’s, and Nvidia — already generate a majority of their revenues internationally.

This younger global population will drive sustained demand across every major sector — from technology and infrastructure to food, energy, and consumer goods. The convergence of global growth, expanding middle classes, and capital flows will create a powerful tailwind for U.S. companies and markets.

And importantly, this opportunity will extend to young Americans who are able to participate early through structured investment accounts.

A Simple Idea With Transformational Power

At its core, the concept is straightforward: provide children with access to financial accounts early in life — accounts that can grow over time and be used for education, development, and long-term advancement.²

But the true power of these programs is not just financial — it is psychological.

When a child grows up knowing they have an account in their name, it changes expectations.

It reinforces the belief that college, training, or entrepreneurship is attainable. Research has shown that children with even modest savings are significantly more likely to attend and complete college.³

These programs do not simply create accounts — they create belief, discipline, and long-term thinking.

Tax & Legal Infrastructure

Behind these accounts lies a sophisticated framework of tax law, financial regulation, and legal structuring.

The newly created Trump Accounts function similarly to custodial retirement accounts for minors, codified under federal law IRC §6434, and Trump Accounts are treated as a special form of traditional IRA.

[i] [ii]These accounts are:

Eligibility: These accounts apply to U.S. children born between 2025 and 2028.
Other children under 18 who can still have Trump Accounts opened for them, just without the $1,000 seed.
Owned by the child
Accepts after tax contributions.
Managed by a parent or guardian as custodian
Subject to special rules until age 18
Converted into standard retirement accounts upon adulthood
Taxed at ordinary income upon withdrawal but if in a low bracket, the tax is negligible.

In many respects, they operate more like long-term investment or retirement vehicles than traditional education accounts.

To function effectively at scale, these programs rely on:

Tax-advantaged growth structures, similar to IRAs and 529 plans, allowing compounding over time ⁴
Penalty: Withdrawals made before age 59½, if not used for specific purposes (like education or first home), may be subject to a 10% penalty.
Gift tax compliance, including annual exclusion limits and reporting rules⁵
Custodial protections, ensuring funds are preserved for the child’s benefit⁶
Public-private coordination, aligning federal policy with institutional implementation

This legal and tax infrastructure is essential. Without it, these programs could not achieve scale, efficiency, or sustainability.

The Dell family’s support has helped enable not only the funding of these accounts, but also the policy innovation and structural design required to expand them nationwide.

The Power of Compounding

The long-term impact of early investment is profound.

A child with $3,000 invested at a young age of around five years old, growing at a 10–12% annual rate, could see that amount grow to over $13,000 by age eighteen. A $6,000 starting balance could reach approximately $27,000, while $10,000 could grow to $45,000 or more over the same period.

These examples demonstrate the extraordinary power of compounding — especially when paired with time, discipline, and structured investment frameworks.

Strategic Philanthropy

What distinguishes the Dell family’s contribution is its strategic nature.

Rather than focusing solely on short-term assistance, their efforts support scalable systems — systems that create long-term pathways to opportunity. This reflects a deeper understanding of how meaningful change occurs.

By investing in children’s financial accounts, they are planting seeds that will grow through compounding returns, educational access, and increased economic participation.

It is a model of philanthropy that combines compassion with structural impact.

A National Impact in Motion

Across the country, these programs are already producing measurable results:

Less people need public assistance and in public housing.
People free to change jobs and relocate.
Increased college enrollment and completion rates
Improved financial literacy among young people
Reduced reliance on high-interest debt
Expanded opportunities for intergenerational wealth building

These outcomes strengthen not only individual families, but the broader economy.

Importantly, these programs are inclusive — designed to reach children across income levels and expand opportunity beyond those who already have financial advantages.

Why This Matters Now

In an era defined by global competition, technological disruption, and evolving labor markets, preparing the next generation is essential.

Programs that provide children with a financial head start are investments in national strength. They enhance workforce readiness, promote economic stability, and reduce inequality over time.

In this context, the Dell family’s leadership is especially meaningful.

Key Takeaways:

Trump accounts are tax-advantaged IRA-style accounts for children under 18.
Eligible newborns (2025–2028) receive a one-time $1,000 federal contribution.
Contributions can come from parents, employers, nonprofits, government, and rollovers.
Employer contributions up to $2,500 annually are not taxable income, within a $5,000 annual cap.
The account grows tax-deferred during the “growth period” (until age 17).
Investments are limited to U.S. equity index funds or ETFs during the growth period.
Funds are generally locked until age 18.
At age 18, the account converts to traditional IRA tax treatment.
To qualify, the child must be under 18, a U.S. citizen, and have a Social Security number.
Form 4547 must be filed to open the account and claim the benefit.
The election must be made by December 31 of the year the child turns 17. The election is filed with a tax return but is not technically part of the return. Only authorized individuals (guardian, parent, etc.) can make the election. The election must be made under penalty of perjury.
Contributions cannot begin until July 4, 2026.

A Note of Gratitude

Meaningful impact often occurs quietly — but its effects are lasting.

To Michael Dell, Susan Dell, and the entire Dell family: a heartfelt thank you.

Thank you for your vision, your leadership, and your commitment to empowering the next generation.

Thank you for supporting not only the financial resources, but also the tax and legal frameworks that make these programs possible.

And most importantly, thank you for helping ensure that more children across America begin life with a foundation for success.

That is a legacy that will endure.

_______________
Commissioner George Mentz JD MBA CILS CWM® (Chartered Wealth Manager) holds a Doctor of Jurisprudence (JD), and an MBA from ABA and AACSB Accredited programs. Mentz is the first in the USA to rank as a Top 50 Influencer & Thought Leader in: Management, PM, HR, FinTech, EdTech, Wealth Management, and B2B according to Onalytica.com and Thinkers360.com. George Mentz JD MBA CILS is a CWM Chartered Wealth Manager ®, global speaker - educator, tax-economist, international lawyer and CEO of the GAFM Global Academy of Finance & Management ®.

Endnotes

Kulzer Di Padova, An Introduction to Trump Accounts and the Contribution Pilot Program (2026).
Prosperity Now, Child Savings Accounts: A Platform for Inclusive Wealth Building (2023).
Elliott, William & Beverly, Sondra, The Role of Savings in College Access and Completion, Washington University in St. Louis.
Internal Revenue Code §529 – Qualified Tuition Programs.
IRS, Gift Tax Annual Exclusion and Reporting Rules, Publication 559 & Form 709.
Uniform Transfers to Minors Act (UTMA) / Uniform Gifts to Minors Act (UGMA).
Aspen Institute, Expanding Economic Opportunity Through Children’s Savings Accounts (2022).
Federal Reserve, Report on the Economic Well-Being of U.S. Households, recent editions.