Some of the money could be returned to people as government efficiency (DOGE) attempts to eradicate unnecessary government spending.
In fact, President Donald Trump and Doge Head Elon Musk announced in February that they would consider plans to release a $5,000 dividend check to Americans from savings from Doge’s cost-cutting efforts.
There are many things you can do with those dollars, but you need to know if you are eligible to pay first.
Where did the Doge stimulus check idea come from?
Trump has yet to release details about the proposed Doge dividend check. But it helps you see where the idea comes from.
In the post, Fishback also attached a document entitled “For Doge Dividend.” In the document, he wrote: “We will take 20% of Doge’s total savings ($400 billion) and return it to 79 million US households who will become net federal income tax payers in CY (calendar year) 2025.”
According to his mathematics, Fishback said that dividend checks would be $5,000 for qualified people.
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Musk, who also owns X, replied, “I’ll check with the President.”
Last month, Trump announced the idea to consider the proposed $5,000 check. Therefore, if Doge dividend checks are realized, they could appear in the form of a $5,000 tax refund sent to US taxpayers.
What to do with the check
So, what can you do for $5,000 if it appears in your bank account?
Save money
The Federal Reserve announced during its March meeting that it would suspend interest rate cuts in light of stubborn inflation, but it will be possible to find high-yield savings accounts that pay an annual yield of around 5% per year.
You can park a $5,000 Doge check on any of these accounts. And over five years, a monthly donation of just $100 could grow to $13,217.40.
Most financial advisors recommend having at least six months’ worth of savings in a high-yield and highly fluid emergency fund. And the $5,000 bonus certainly helps many Americans build it.
Please contribute to 401(k)
If you are able to have a workplace retirement plan, such as a 401(k), a $5,000 donation could help promote retirement savings.
But there’s more to it. Contributions to the traditional 401(k) can be tax deductible. This means they can lower your tax liability or increase your refund for a given year.
Also, if you have a Roth 401(k), you can withdraw funds tax-free if you are at least 59 and a half years and your account has been open for at least 5 years.
If you don’t have a workplace retirement plan, you can always open a traditional or loss individual retirement account (IRA). You can easily open these accounts online through major brokerage companies.
Invest in the stock market
You can purchase individual stocks and other securities, such as exchange trade funds (ETFs) and mutual funds, through regular brokerage accounts.
However, you may be worried about the recent stock market correction. If the market declines above 10% but below 20%, a correction will occur.
You may also be concerned about the potential bear market, where the stock market will fall by more than 20%.
Conclusion
Little is known about the proposed $5,000 Doge dividend. But the idea is there and the president said he is considering it. However, if you meet a $5,000 bonus, the key point is to make sure you use it wisely. You can use it to boost your emergency funds or retirement savings. Investing in the stock market also increases the risk of potentially high returns.
Epoch Times Copyright©2025. The views and opinions expressed are those of the author. They are for general informational purposes only and should not be interpreted or interpreted as recommendations or solicitations. Epoch Times does not provide investments, taxes, legal, financial planning, real estate planning, or other personal financial advice. Epoch Times is not responsible for the accuracy or timeliness of the information provided.
