Ray Dalio is the latest billionaire to give money to Trump Accounts for kids

Andrew Keshner

BlackRock, Uber and Visa are among the major companies who have signed on to participate in Trump Accounts

Hedge-fund billionaire Ray Dalio is in on Trump Accounts, the investment accounts for children that will go live next year. So are a growing list of major employers.

Hedge-fund billionaire Ray Dalio is the latest in a slew of deep-pocketed contributors and companies ready to pour money into Trump Accounts, the investment accounts for American children that will be available starting in 2026.

Weeks after billionaires Michael and Susan Dell announced a $6.25 billion investment in the accounts, Treasury Secretary Scott Bessent said Wednesday that Dalio, the billionaire founder of the hedge-fund giant Bridgewater Associates, was joining the effort.

Dalio's donation will go to children in Connecticut, according to Bessent. It's the first of a "50-state challenge" to find bold-faced donors willing to give to the accounts of children in their state, Bessent said.

"Ray has made the first move," Bessent said at a Wednesday press conference launching the government's website for Trump accounts.

In a LinkedIn post, Dalio explained his motivation. "These Trump Accounts are great not just because they put money into stocks for these young people but also because they draw their attention toward how finance, stocks, companies, and capitalism work to improve society and can work for them."

The accounts were created by the One Big Beautiful Bill Act that Trump signed into law this past summer. The U.S. government will donate $1,000 in seed money to Trump Accounts for American-citizen babies born between 2025 and 2028. Parents, employers, donors and state governments can also put money in the accounts. The yearly contribution maximum is $5,000 through 2027 and is then indexed for inflation.

Michael and Susan Dell plan to put $250 in the accounts of 25 million young children who live in ZIP codes where the median income is $150,000 or below.

Dalio's approximately $75 million donation will also be $250 per account, and will reach around 300,000 children under age 10, according to an announcement from Dalio Philanthropies. Like the Dells, the donation from Dalio and his wife Barbara will apply to children who live in ZIP codes with median incomes of $150,000 and lower.

The newly established investing accounts, also called 530A accounts, may be the birth of a new workplace perk for employees. Major companies BlackRock (BLK), Visa (V), Mastercard (MA), Uber (UBER) and Block (XYZ) have all signed on to chip in money to their employees' accounts when they go live next year, according to the Trump Accounts website.

BlackRock said it will match the $1,000 one-time contribution from the government for all eligible U.S. employees. The asset manager said it "has long championed early-childhood savings accounts and supported the policies that make them possible."

Meanwhile, Visa said in a statement it "is proud to offer the new 530A Trump Accounts to create a stronger, more secure financial future for children. We plan to include these accounts in our benefits package for U.S. employees when they become available."

"Uber is looking forward to supporting this program and building on the government's contribution for our employees," the company said.

The money in Trump Accounts will be invested in low-cost index funds, and kids can't touch the money until they're 18. At that point, they can withdraw from the account for expenses such as buying a house, starting a business or education. Withdrawals are taxed, which makes the accounts less favorable, taxwise, than other savings tools for children such as 529 accounts. A child with $1,000 in an account who made no other contributions to it would theoretically see their money grow to about $3,500 over 18 years, assuming a 7% return.

Employers can put up to $2,500 annually into an employee's child's account, with the contribution counting towards the $5,000 yearly limit. The money doesn't count towards the worker's taxable income. Employers are allowed to give workers the choice of putting their own pre-tax money in these accounts, according to proposed IRS regulations.

This month, BNY (BK) said it would be putting $1,000 in the accounts of workers' newborn children. The financial-services firm joins Charter Communications (CHTR) and Dell Technologies (DELL), which already said they'd be matching the $1,000.

Bessent said the day would come when companies offer a Trump Account contribution in the same way they widely offer matches on worker retirement accounts.

Yet next year may be too soon for many companies to start putting money into their employees' accounts, said Craig Copeland, director of wealth-benefits research with the Employee Benefit Research Institute.

But 2027 could be the breakout year, Copeland said ahead of Wednesday's press conference. As workers "see the accounts being set up, then for 2027, it may be something that people are going to be looking for," he said.

After the news, Copeland said there was still a ways to go before the accounts became a standard workplace benefit on par with 401(k) accounts.

There hasn't yet been " a huge outcry of interest" from employers thinking about making Trump account contributions, said Holly Verdeyen, U.S. defined contribution leader Mercer, a human resources consulting firm.

There's a still range of technical questions about an employer's paperwork and regulatory obligations if it puts money into the accounts, she said. Furthermore, companies have their own budget pressures, considering the rising cost of health insurance, Verdeyen said.

"The affordability of benefits for employers and employees is a really big issue," Verdeyen said, later adding, "these contribution dollars are already kind of scarce."

Will a growing list of participating employers add momentum to Trump Accounts workplace contributions? Wait and see, Verdeyen said.

"This administration has shown the ability to influence both lawmakers and corporate leaders, " she said. "When other large organizations are coming out publicly in support of these accounts that could certainly have an impact on their peers from a competitiveness of benefits standpoint."

Since 2024, employers have also had the option of auto-enrolling employees in emergency savings accounts with balances of up to $2,500. About 37% of employers offer some form of emergency savings help for their workers, according to EBRI.

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-Andrew Keshner

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12-18-25 1251ET