US media: "Trump's account" may allow wealthy donors to contribute stocks directly

Golden Financial reports: On May 6, according to The New York Times, officials from the White House and the U.S. Treasury have already begun internal discussions about expanding the investable scope of the “Trump Account” (officially known as the 530A account). The current discussions include allowing the world’s richest individuals to donate their company stock. The Trump Account currently only allows cash investment in diversified index funds and does not allow stock donations. This proposal is intended to make use of the unrealized wealth of billionaires such as Elon Musk or Jensen Huang. If the relevant rules are amended, Musk would be able to directly donate Tesla or SpaceX stock, and Huang could donate Nvidia stock. Compared with the slow and steady returns of index funds, children would be able to hold large-cap, high-growth tech stocks over the long term, and are expected to earn substantial returns. Donors can transfer high-priced stocks worth billions of dollars without triggering capital gains tax, while also receiving full charitable donation tax deductions based on the stock’s fair market value, further reducing their tax burden. However, this idea has already sparked debate within the Treasury Department. Limiting the Trump Account to diversified index funds was originally intended to protect children from the shock of sharp market volatility. To modify the current rules, relevant regulations would need to be revised, which may require passing legislation.