The Trump Accounts program, a tax-deferred investment vehicle designed for U.S. children under 18, has reached nearly 70 million accounts, with more than 60 million created this month through automatic enrollment efforts. President Trump addressed the expansion during an Oval Office event on Wednesday, noting that over $4.5 billion has been deposited into the accounts to date, encompassing government seed contributions, family donations, and philanthropic gifts. Children born between 2025 and 2028 are eligible to receive a one-time $1,000 government-funded seed deposit, with additional contributions available from family members and donors.
The Treasury Department and IRS released revised regulations last week that permit individual stock donations to Trump Accounts, a significant change from previous guidelines limiting accounts to diversified, low-cost index funds. This modification has opened the door to larger philanthropic contributions, with Internal Revenue Service CEO Frank Bisignano indicating that mega-donors in the nine-digit range are positioned to participate in the program. The stock donation rule change was prompted by commitments from major donors, including SpaceX President Gwynne Shotwell, who pledged contributions in July.
Financial advisors note that the new stock-donation rules make contributions more attractive from a tax perspective, as donors can avoid capital gains taxes triggered by selling stock and gifting proceeds. However, financial professionals caution that concentrating assets in individual company stocks carries elevated risk compared to diversified index funds. The Treasury’s own regulations acknowledge that account holders will experience increased portfolio concentration risk from stock contributions, though the IRS disputed this characterization this week.
Prominently attending Wednesday’s event were tech CEO Michael Dell and his wife, Susan, along with Altimeter Capital CEO Brad Gerstner. The Dells previously committed $6.25 billion in grants for children in lower-income areas, while Gerstner pledged support for accounts in Indiana. Financial planning experts recommend that eligible families claim the available $1,000 government contribution while considering whether Trump Accounts align with their savings objectives, noting that alternative vehicles such as 529 college savings plans and custodial accounts may suit different family circumstances.
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