Musk pledges one SpaceX share per child as Trump Account rules are debated
Aon's Grace Lattyak told a Treasury and IRS hearing that proposed rules may shortchange children of divorced or separated parents.
At a glance
President Trump and other officials have since suggested the shares could be routed through Trump Accounts, the $1,000 seed-deposit savings program that launched July 4.
Grace Lattyak, a partner at Aon, testified before the Treasury Department and IRS last week that the proposed Trump Account rules could disadvantage children of divorced or separated parents.
Elon Musk said Monday that he would give one SpaceX share to every child in America. 401(k) Specialist put the pledge at $10.5 billion if extended to all 73 million Americans under 18, based on SpaceX share prices of $147 to $150. The announcement, made on X, offered few operational details on eligibility or how the shares would be distributed.
President Trump and other officials have since suggested the shares could be routed through Trump Accounts, the $1,000 seed-deposit savings program that launched July 4. Doing so could expose children or their families to rules including a mandatory five-year holding period during which they cannot sell the shares, according to the report.
Proposed rules and employer contributions
Grace Lattyak, a partner at Aon, testified before the Treasury Department and IRS last week that the proposed Trump Account rules could disadvantage children of divorced or separated parents.
"That distinction can produce an inequitable result," she said. "A child whose parents file jointly could potentially receive contributions through each parent's employer. A similarly situated child of divorced or separated parents would lose access to one parent's employer program solely because of the parents' marital or tax filing status."
Lattyak also said the proposed regulations may create unnecessary burdens for employers, who might have to monitor changes in employees' family circumstances to comply with the accounts. Contributions could be made through existing employer benefits plans, but the administration remains complex. "Without a centralized process, an employer could be required to validate accounts, route payroll and employer contributions," she said, and to communicate corrections separately with multiple financial institutions.
A centralized route has been under discussion since September, when the ERISA Industry Committee asked Treasury to make BNY the Trump Account clearinghouse for employers, as this publication reported. Treasury opened more than 60 million Trump Accounts in early October; parents still must complete an identity-verification claim before adding money or changing how an account is invested.
Save this analysis and keep the funds you follow together in My Desk.
Sign in to save articles or follow funds.