Trump Accounts top 70 million as new rules could boost mega donors, official says

• IRS CEO Frank Bisignano confirmed 'mega donors in the nine-digit range' are preparing to contribute, with several major gifts in the pipeline following new rules allowing individual stock donations to Trump Accounts.
• Over 60 million accounts were auto-enrolled this month, with total deposits exceeding $4.5 billion from seed money, family contributions, and philanthropic gifts including commitments from tech CEO Michael Dell and Altimeter Capital CEO Brad Gerstner.
• Donated stocks must be held for five years before being sold, creating concentration risk for individual account holders while offering tax advantages to wealthy donors who can avoid capital gains taxes on appreciated stock.

Summary: Trump Accounts Reach 70 Million as Stock Donation Rules Attract Major Philanthropists

Key Facts & Figures:

President Trump's tax-deferred investment accounts for children have enrolled nearly 70 million participants, with over 60 million added through auto-enrollment this month. The program has accumulated over $4.5 billion in total deposits, including government seed money, family contributions, and philanthropic gifts.

Program Details:

Trump Accounts target children under 18 with Social Security numbers, offering a one-time $1,000 Treasury deposit for those born between 2025-2028. The program now covers all eligible American children under 18 through automatic enrollment.

Major Development:

New Treasury regulations allow stock donations to Trump Accounts, replacing previous rules limiting contributions to diversified, low-cost funds. Donated stocks must be held for five years before selling. IRS CEO Frank Bisignano confirmed "mega donors in the nine-digit range" are preparing contributions, though this creates concentration risk for individual account holders.

Notable Donors:

Tech CEO Michael Dell and wife Susan committed to funding accounts for children born 2016-2024 in lower-income ZIP codes. Altimeter Capital CEO Brad Gerstner pledged support for Indiana children, with additional philanthropists reportedly interested.

Tax Advantages:

Stock donations allow wealthy donors to avoid capital gains taxes while contributing appreciated assets. However, financial advisors note individual stock holdings carry higher risk than diversified portfolios.

Alternative Options:

Advisors recommend families also consider 529 education savings plans (offering tax-free withdrawals for qualified expenses) and custodial brokerage accounts with annual tax-planning opportunities.

Political Context:

The announcement comes ahead of midterm elections as Republicans defend slim Congressional majorities.