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

According to the New York Times, officials from the White House and the U.S. Treasury Department have held internal discussions on expanding the investment scope of the "Trump Account" (officially known as the 530A Account). The current discussion includes allowing the world's wealthiest individuals to donate their company stocks. The Trump Account currently only permits cash investments in diversified index funds and does not allow stock donations. This concept aims to leverage the unrealized wealth of billionaires like Elon Musk or Jensen Huang. If the relevant rules are amended, Musk could directly donate Tesla or SpaceX stock, and Jensen Huang could donate Nvidia stock.

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

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