The Trump administration has held internal discussions about allowing wealthy donors to contribute company shares to Trump Accounts in exchange for major charitable tax breaks. According to reports from The New York Times, the proposal would fundamentally change the program by allowing donors to give stock shares of companies like Tesla or Nvidia while avoiding capital gains tax and claiming full charitable deductions at market value. The discussion names Brad Gerstner of Altimeter Capital as the lead advocate for this potential policy change, which would represent a significant expansion beyond the current cash-only investment structure. This development would open up Trump Accounts to contributions from some of the world's wealthiest people, potentially allowing Elon Musk to gift shares of Tesla or Jensen Huang to contribute shares of Nvidia. The move could reshape the initiative designed for roughly 5 million enrolled children, departing from the program's current cash-only structure.
Trump Accounts went live this year under the One Big Beautiful Bill Act, providing each US child born between 2025 and 2028 with a $1,000 Treasury seed deposit. As reported by The New York Times, parents can add up to $5,000 annually in post-tax dollars, with deposits invested in stock mutual funds or exchange-traded funds mirroring the S&P 500 or other American stock indexes. Cash contributions officially opened on July 5, 2026, with the program designed to route appreciated founder wealth into accounts for millions of American children. The program is administered by the U.S. Treasury with Bank of New York Mellon Corporation serving as financial agent and partnering with Robinhood to develop a dedicated Trump Account app. According to The New York Times, roughly 5 million children have been enrolled in Trump Accounts, including 1.2 million babies eligible for the $1,000 federal seed money. The Treasury Department oversees administration alongside custodians Bank of New York Mellon and Robinhood, with parents able to open accounts online at trumpaccounts.gov or with their 2025 tax returns.
Private capital is already flowing into the program, with Michael and Susan Dell pledging $6.25 billion in December. According to The New York Times, their gift will seed $250 deposits for approximately 25 million children in lower-income ZIP codes with median incomes under $150,000. Additional major commitments include contributions from Ray and Barbara Dalio providing $250 contributions to 300,000 children in Connecticut, and hedge fund manager Brad Gerstner announcing a similar pledge in Indiana as part of a federal "50 State Challenge." Major corporations including JPMorgan Chase, Charles Schwab, BlackRock, Visa, Intel, and Bank of America have also pledged Trump Account contributions to children of employees. The proposed stock donation structure could attract billions from founders sitting on highly appreciated equity, offering a double benefit through avoided capital gains tax and full market value deductions. Tax treatment adds complexity, with individual contributions made post-tax and only earnings taxed upon withdrawal, while employer and charity inputs are pre-tax and fully taxable later.
According to The New York Times, roughly 5 million children have been enrolled in Trump Accounts, including 1.2 million babies eligible for the $1,000 federal seed money. Treasury Secretary Scott Bessent confirmed that the seed money will be deposited "as soon as practicable" after account authentication. The accounts are owned by children but administered by adults until age 18, when they become "ordinary IRAs" with more investment flexibility. Deposits cannot be withdrawn prior to the beneficiary turning 18 years old, after which the account generally is treated as a traditional IRA subject to the same withdrawal rules as other traditional IRAs. Contributions can come from individuals, employers, governments, philanthropists, and charities, with employer contributions capped at $2,500 per year per employee that may be split among multiple children. Families can open accounts through IRS Form 4547 online at trumpaccounts.gov or with their 2025 tax return, with the IRS establishing accounts and partner financial firms providing setup instructions. Withdrawals are currently slated for January 1 of the year a child turns 18, though rules may shift to post-18th birthday distributions due to legal considerations.
Trump Accounts currently restrict investments to low-cost index funds with at least 90% invested in U.S. firms and expense ratios capped at 0.1%. According to The New York Times, the program's rules change significantly when children turn 18, transitioning to "ordinary IRA" status with more investment freedom. The NYU Tax Law Center characterizes the proposed stock donation expansion as an expansion of philanthropy deductions already used by ultra-wealthy donors. Any expansion would require new legislation, with Congress standing as the gatekeeper for determining whether founder stock can flow into accounts for millions of American children. The program's unique "invest in America" theme and unusual restrictions on investment flexibility set it apart from traditional retirement accounts, with the rules changing when children reach 18 to allow more investment flexibility. With the potential inclusion of stock donations, the Treasury faces a delicate balance in managing a system that could soon hold billions in diverse assets by the July 2026 launch, raising questions about equity and access as the program scales.
