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Dell family to seed Trump accounts for kids with $250

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https://www.bbc.com/news/articles/cyvgq184vgqo

Tech billionaire Michael Dell and his wife, Susan, have announced plans to 
donate $250 to 25 million children across the US.

The $6.25bn (Ł4.72bn) gift will bolster Trump-branded investment accounts, 
which were authorised by Congress as part of its tax and spending bill 
earlier this year with the aim of encouraging families save for 
retirement.

As part of that scheme, babies born between 2025 and 2028 are also 
eligible to receive $1,000 from the government.

The Dells said their gift, which targets children age 10 and under, was 
intended to help seed those accounts and expand the savings opportunity to 
even more children.

"We've seen what happens when a child gets even a small financial 
headstart - their world expands," Michael Dell said in a video on social 
media announcing the donation.

Unlike the government plan, the Dells said children age 10 and under, who 
were born before 1 January 2025 were eligible for their gift, provided 
they live in areas where the median income is below $150,000.

The Dells said they expected the gift to reach almost 80% of children age 
10 and under in the US. It is among the largest ever private donations to 
go directly to Americans.

Dell, the chief executive of Dell Technologies with a fortune that Forbes 
estimates at almost $150bn, also urged other philanthropists and employers 
to make similar commitments.

"Two great people. I love Dell!!!" President Donald Trump wrote in all 
capital letters on social media in response to the announcement.

How Trump accounts work
The money will be routed through the new Trump-branded accounts, which by 
law must be invested in an index fund that reflects the wider stock 
market.

It is not currently possible to set up a Trump account. The government has 
said that process will launch next year, with more details available at 
that time.

Parents are eligible to contribute up to $5,000 in after-tax funds to the 
accounts, a figure that will be adjusted for inflation, with employers, 
charitable organisations and others also able to donate.

The child can access the money at age 18 at which point the account 
converts into a retirement account. While the money grows tax free, 
withdrawals are subject to taxes and possibly a penalty if made before the 
age of 59 and a half.

The White House Council of Economic Advisers earlier this year estimated 
that $1,000 could grow to more than $5,800 over the course of 18 years, 
assuming a 10.3% rate of return.

When they were created earlier this year, the Trump accounts met with 
significant scepticism from critics, who argued that the accounts would 
primarily benefit better off families, who have extra money to set aside, 
while being less flexible than other, existing savings vehicles.

The Tax Foundation, a think tank focused on tax policy, on Tuesday said 
that Trump accounts were "well intentioned" but would "add another layer 
to an already overcomplicated savings account system in the United 
States".

"Trump Accounts do not offer much of an additional incentive to save," it 
added. "Rather, the main benefit is in the form of the $1,000 initial 
deposit from the federal government and whatever employers choose to 
contribute."

Treasury Secretary Scott Bessent also drew criticism from Democrats after 
promoting the scheme as a way to support alternatives to government-funded 
retirement benefits, calling it a "backdoor to privatizing Social 
Security".


-- 
November 5, 2024 - Congratulations President Donald Trump.  We look 
forward to America being great again.

We live in a time where intelligent people are being silenced so that 
stupid people won't be offended.

Every day is an IQ test. Some pass, some, not so much.

Thank you for cleaning up the disasters of the 2008-2017, 2020-2024 Obama 
/ Biden / Harris fiascos, President Trump.

Under Barack Obama's leadership, the United States of America became the 
The World According To Garp.  Obama sold out heterosexuals for Hollywood 
queer liberal democrat donors.

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Dell family to seed Trump accounts for kids with $250 "Leroy N. Soetoro" <leroysoetoro@americans-first.com> - 2025-12-02 21:46 +0000

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