Months after Dell's $6.25B pledge, Trump Accounts get new rules
The US Treasury Department has introduced new guidance allowing employers to make tax-free contributions to 'Trump Accounts,' a child savings initiative. This follows a significant $6.25 billion pledge from Michael and Susan Dell to support the program.
Why it matters
The policy change aims to facilitate wealth building for American families through employer-sponsored payroll contributions, marking a major shift in child savings incentives.
The US Treasury Department has unveiled new guidance that could make it easier for millions of American families to grow their Trump Accounts through workplace payroll contributions. The announcement comes months after Dell Technologies founder Michael Dell and his wife Susan Dell pledged $6.25 billion to Trump Accounts through the Michael & Susan Dell Foundation to support the child savings initiative, one of the largest commitments made to the programme. Announcing the new update, Treasury Secretary Scott Bessent said: “Trump Accounts are giving American families a new way to build wealth from day one”.Trump Accounts get new payroll contribution rulesThe new Treasury guidance allows employers to make tax-free contributions of up to $2,500 a year for employees' dependent children and lets workers contribute pre-tax money directly from their paychecks into their children's Trump Accounts.
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