US media: "Trump Account" may allow the wealthy to directly donate stocks

According to a report by The New York Times, officials from the White House and the U.S. Treasury Department have begun internal discussions about expanding the investment scope of the "Trump Account" (formally known as the 530A account). Current discussions include allowing the world's wealthiest individuals to donate shares of their own companies. The Trump account currently only permits cash investments in diversified index funds and does not allow stock donations. This concept aims to tap into the yet-unrealized wealth of billionaires like Elon Musk or Jensen Huang. If the relevant rules are amended, Musk could directly donate shares of Tesla or SpaceX, and Jensen Huang could donate shares of Nvidia.

Compared to the slow but steady returns of index funds, children would be able to hold long-term exposure to high-growth large-cap tech stocks, potentially generating massive gains. Donors, meanwhile, could transfer billions of dollars worth of high-priced stocks without triggering capital gains tax, while also receiving full charitable contribution tax deductions based on the fair market value of the stocks, further reducing their tax burden.

However, this idea has sparked debate within the Treasury Department. Restricting the Trump account to diversified index funds was originally intended to protect children from severe market volatility. Modifying the current rules would require amending relevant regulations, which may need to be accomplished through legislation. (Jin Shi)