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Trump Account Calculator

One $1,000 seed. Eighteen years. See what it becomes.

Trump Accounts launched July 4, 2026: a custodial IRA-style account for any US-citizen child under 18, with a one-time $1,000 government deposit for kids born 2025–2028 and up to $5,000 a year in contributions invested in low-cost US index funds. The numbers compound in ways that surprise people — maxed out at 8%, a newborn's account reaches roughly $191,000 by 18 and, untouched, nearly $4.8 million by 60. But the rules have teeth: locked until 18, ordinary-income tax on earnings, and a 529 usually beats it for college. This calculator projects your child's account with the real constraints.

Why people use this

New parents and grandparents use it to see what the $1,000 seed plus steady contributions actually becomes — $191k at 18 when maxed — and to grasp the tradeoffs nobody headlines: locked until 18, ordinary-income tax on earnings, and a student-asset hit on financial aid that makes the 529 the better college vehicle.

How it works

1. Enter years until the child turns 18 — the account locks until January 1 of that year.
2. Toggle the $1,000 pilot seed (children born January 1, 2025 through December 31, 2028 only).
3. Enter annual family contributions and any employer contribution (up to $2,500, pre-tax through a cafeteria plan) — combined cap $5,000, indexed after 2027.
4. Set an expected return — investments are limited to US equity index funds with a 0.10% expense cap.
5. Results: balance at 18, the growth component, and what the account becomes at 30 and 60 if left untouched under IRA rules.

Common questions

Who gets the $1,000 government deposit?

US-citizen children born between January 1, 2025 and December 31, 2028, for whom a parent or guardian files the election (Form 4547 or trumpaccounts.gov). Older children can still have accounts and receive contributions — they just don't get the seed. The $1,000 doesn't count toward the $5,000 annual limit.

Trump Account vs 529 — which is better?

For college: the 529 wins — qualified withdrawals are completely tax-free and parent-owned 529s barely affect financial aid (5.64% assessment vs ~20% for a student-owned Trump Account). For everything else — a first home, a head start on retirement — the Trump Account's flexibility is the point. Many families will use both: 529 for education, Trump Account as the child's retirement launchpad, with a Roth conversion at 18 when the child's bracket is near zero.

What happens when my child turns 18?

The account becomes a traditional IRA in the child's name. Contributions made with after-tax dollars come back tax-free, but investment earnings are taxed as ordinary income on withdrawal, with a 10% penalty before 59½ except for education, a first home ($10,000), and the standard IRA exceptions. A Roth conversion at 18 — paying tax at the child's low rate, then never again — is the strategy most advisors expect to recommend.

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