Trump Account Calculator
Project how much a child’s Trump Account (IRC Section 530A) could be worth by age 18 — including the $1,000 federal seed deposit, your own contributions, and employer contributions under the new Section 128 program — using the same monthly-compounding math behind the account’s actual growth.
Reviewed for accuracy: January 2026 · Compiled by Manzoor Ahmad · Sourced from the Congressional Research Service, IRS Notice 2025-68, and the One Big Beautiful Bill Act (P.L. 119-21)
Combined: $2,400 / $5,000 annual cap
10.5% reflects the long-run historical average of U.S. stocks; the account must be invested in a diversified U.S. stock index fund during the growth period, so returns will track the broad market rather than any single pick.
Trump Account Growth by Contribution Level
A quick reference for a newborn (18 years of growth) with the $1,000 federal seed included, at different monthly contribution levels and return scenarios.
| Return | $0/mo | $50/mo | $100/mo | $200/mo | $417/mo (max) |
|---|---|---|---|---|---|
| Conservative (4%) | $2,052 | $17,832 | $33,611 | $65,170 | $133,550 |
| Moderate (7%) | $3,513 | $25,049 | $46,585 | $89,657 | $182,981 |
| Optimistic (10.5%) | $6,565 | $38,366 | $70,167 | $133,769 | $271,576 |
Balance Growth Over Time
How your child’s projected balance builds year by year, based on the inputs above.
What Is a Trump Account?
A Trump Account is a new type of tax-deferred savings account for children, created by Section 70204 of the One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, and codified as new Internal Revenue Code Section 530A. Functionally, it’s a traditional IRA opened for a child under 18 — the money grows tax-deferred, and the account converts to a regular traditional IRA once the child turns 18. Unlike a normal IRA, a child doesn’t need earned income to have one.
$1,000 federal seed
A one-time $1,000 deposit from the U.S. Treasury for every eligible U.S. citizen child with a Social Security number born January 1, 2025 through December 31, 2028 — no income limits or phase-outs apply.
$5,000 annual contribution cap
Parents, grandparents, family, and friends can contribute a combined total of up to $5,000 per year (indexed for inflation starting in 2028). No single contributor is guaranteed a slice — it’s a shared cap across everyone giving to that child’s account.
$2,500 employer sub-limit
Under new IRC Section 128, employers can contribute up to $2,500 per year toward an employee’s child’s Trump Account, tax-free to the employee. This amount counts toward, not on top of, the $5,000 combined annual cap.
Must be invested in a U.S. stock index fund
During the “growth period” (until the year before the child turns 18), funds must be held in a diversified, low-fee index fund tracking U.S. stocks — not cash, not individual stocks, and not international funds.
Timeline, Contributions & Withdrawal Rules
During the growth period, distributions from a Trump Account are generally not permitted — this isn’t a flexible spending account you can dip into for a school trip. Contributions themselves are never tax-deductible, since they’re made with after-tax dollars (aside from the special tax-free employer contribution under Section 128).
Trump Account vs. 529 Plan vs. Custodial Roth IRA
Families often ask how a Trump Account stacks up against the savings vehicles they already know. Each serves a different purpose, and many families end up using more than one.
| Feature | Trump Account | 529 Plan | Custodial Roth IRA |
|---|---|---|---|
| Government seed money | $1,000 (2025–2028 births) | None | None |
| Requires child’s earned income | No | No | Yes |
| Annual contribution cap | $5,000 combined | Varies by state (often $235,000+ lifetime) | Child’s earned income, up to the IRA limit |
| Tax treatment of withdrawals | Ordinary income (like a traditional IRA) | Tax-free for qualified education expenses | Tax-free qualified withdrawals |
| Use restriction | None after age 18 — general purpose | Education expenses (with limited exceptions) | Retirement-focused, flexible early-withdrawal rules for contributions |
What This Calculator Doesn’t Account For
Markets don’t return a fixed rate every year
This projection assumes a smooth, constant annual return. Real index fund returns vary significantly year to year — some years negative — even if the long-run average lands near the historical figure.
Fees and taxes at withdrawal aren’t modeled
The projected balance is pre-withdrawal. Since the account converts to a traditional IRA at 18, withdrawals will generally be taxed as ordinary income in the year taken.
Some rules are still being finalized
As of this writing, the IRS has only issued proposed regulations on which specific investments qualify. Final rules could adjust some mechanics before the first full contribution cycle completes.
Contribution limits are indexed after 2027
The $5,000 annual cap adjusts for inflation starting in 2028. This calculator holds the cap constant across all projected years for simplicity, which will modestly understate the true ceiling in later years.
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Frequently Asked Questions
U.S. citizen children with a valid Social Security number born January 1, 2025 through December 31, 2028 qualify for the one-time $1,000 federal seed deposit, with no income limits or phase-outs. Children born outside that window can still have a Trump Account opened and funded — they just don’t receive the $1,000 seed.
Trump Accounts began accepting contributions on July 4, 2026 — no contributions were permitted before that date, even though the law was signed a year earlier. The specific investment options available were still being finalized in IRS proposed regulations as of August 2026.
Generally, no. During the “growth period” — from account establishment until the year before the child turns 18 — distributions are largely restricted. From January 1 of the year the child turns 18, the account converts to a standard traditional IRA and ordinary IRA distribution rules apply.
No. Ordinary contributions from parents, family, or friends are made with after-tax dollars and are not deductible. The one exception is employer contributions under the new Section 128 program, which are tax-free to the employee.
They serve different purposes rather than competing directly. A 529 plan generally has a much higher lifetime contribution ceiling and tax-free withdrawals for education, while a Trump Account includes free government seed money and isn’t restricted to education spending once the child turns 18. Many families are likely to use both.
The account simply becomes a traditional IRA in the young adult’s own name, subject to standard traditional IRA rules — including the same early-withdrawal considerations and required minimum distribution rules that apply to any traditional IRA.
References
- Congressional Research Service. Trump Accounts: Overview and Policy Considerations (R48910). Congress.gov.
- Internal Revenue Service. Proposed Regulations on Eligible Investments for Trump Accounts. IRS.gov, August 2026.
- Internal Revenue Service. Notice 2025-68 — Intent To Issue Proposed Regulations Regarding Trump Accounts. December 2, 2025.
- One Big Beautiful Bill Act, Pub. L. No. 119-21, Section 70204 (creating 26 U.S.C. § 530A).