Who qualifies for the $1,000 Trump Account deposit?

U.S. citizen children born between January 1, 2025 and December 31, 2028 with a valid Social Security number qualify for the one-time $1,000 federal deposit under the pilot program. A parent or guardian makes the election by filing IRS Form 4547 through an ID.me-verified account.

How much can I contribute to a Trump Account each year?

Family and friends can contribute up to $5,000 per child per year (indexed for inflation). Contributions are after-tax — there is no federal deduction. Employers may contribute up to $2,500 per employee's child, excluded from the employee's income.

How is a Trump Account invested?

Until the child turns 18, the account may only be invested in low-cost mutual funds or ETFs that track a broad U.S. stock market index, such as the S&P 500. Bonds and international funds are not permitted before 18.

What happens to a Trump Account when the child turns 18?

In the calendar year the child turns 18, the account converts to a traditional IRA. Investment restrictions lift, and standard IRA rules apply: earnings, the $1,000 federal deposit, and employer contributions are taxed as ordinary income at withdrawal, while your own after-tax contributions come back tax-free as basis. Withdrawals before age 59½ generally incur a 10% penalty on the taxable portion unless an exception (such as a first home purchase or qualified education expenses) applies.

Is a Trump Account better than a 529 plan?

They serve different goals. A 529 plan offers tax-free growth and tax-free withdrawals for qualified education expenses, plus state tax deductions in many states. A Trump Account grows tax-deferred but distributions are taxed as ordinary income. If college savings is the goal, a 529 usually wins; the Trump Account's main advantage is the free $1,000 federal deposit for eligible children.

Are Trump Account calculator results guaranteed?

No. All projections are hypothetical illustrations based on the return rate you choose. Actual market returns vary year to year and can be negative. This tool is for education only and is not financial or tax advice.

Trump Account Calculator (2026) — Realistic Growth Projections

Project what your child's Trump Account could be worth — with assumptions you control. Unlike the official projector, this calculator lets you set the return rate, include employer contributions, show results in today's dollars, and separate what you put in from what the market added.

How this calculator works

The projection adds your annual contribution — personal plus any employer money, capped at the $5,000 combined limit — at the start of each year until the year your child turns 18, applies your chosen return rate annually, and includes the one-time $1,000 federal deposit automatically for children born January 1, 2025 through December 31, 2028. From 18 to 65 the balance keeps compounding with no new contributions, because at 18 the account converts to a traditional IRA (your child could keep contributing under IRA rules — we leave that out to keep the illustration honest).

The official government projector assumes steady growth and headlines numbers like "$13 million by 55." Markets don't move in straight lines, and a dollar in 2060 won't buy what it buys today. Use the today's-dollars toggle to see projections deflated by 2.5% annual inflation — it's the number that actually tells you what the account is worth.

Trump Account rules at a glance

Eligibility: U.S. citizen child under 18 with a valid Social Security number. Parents elect in by filing IRS Form 4547 through an ID.me-verified account (about 5–10 minutes).
$1,000 federal deposit: one-time, for children born 2025 through 2028 (the pilot window).
Contribution limit: $5,000 per child per year, indexed for inflation. Contributions are after-tax — no federal deduction.
Employer contributions: employers may add up to $2,500 per year, excluded from the employee's taxable income. Under current guidance the $5,000 cap applies to the combined total — enter employer money in its own field above and the calculator caps it for you.
Investments before 18: restricted to low-cost mutual funds or ETFs tracking a broad U.S. stock index (like the S&P 500). No bonds, no international funds.
No withdrawals before 18. In the year the child turns 18, the account becomes a traditional IRA. At withdrawal, earnings, the $1,000 deposit, and employer money are taxed as ordinary income — your own after-tax contributions come back tax-free as basis (per the March 2026 proposed regulations) — and withdrawals before 59½ generally carry a 10% penalty on the taxable portion unless an exception applies (first-home purchase, qualified education expenses, and others).

Worth knowing: because the account becomes a traditional IRA at 18 while your child is likely in a near-zero tax bracket, some planners suggest evaluating a Roth conversion at that point — paying a small tax bill early in exchange for decades of tax-free growth. See what it's worth in our Roth conversion calculator, and talk to a tax professional before acting.

Trump Account vs. 529 plan — quick take

If your goal is college, a 529 plan usually wins: qualified education withdrawals are completely tax-free, contribution limits are far higher, and many states add a deduction. The Trump Account's edge is the free $1,000 deposit and its flexibility as retirement seed money for your child. Many families will sensibly do both: claim the free $1,000 here, direct serious education savings to a 529. Run your own numbers in our Trump Account vs. 529 comparison calculator.

Three scenarios to try in the calculator

These presets show how sensitive the result is to contributions versus returns. All assume a 2026 birth with the $1,000 seed and contributions at the start of each year:

Seed only ($0/year, 7%): the $1,000 compounds alone to roughly $3,300 by 18 and about $14,000 by 65 — free money, but small without contributions.
Steady $100/month ($1,200/year, 7%): about $22,600 contributed, worth roughly $45,000–$48,000 at 18 and several hundred thousand by 65. This is the default view above.
Max plus employer ($5,000/year incl. $2,500 employer, 7%): $90,000 contributed by 18, worth roughly $175,000–$185,000 at 18. At 5% the same inputs land near $140,000; at 10% near $250,000. The cap binds fast — see the year-end checklist for reconciling family and employer money.

Changing the return by two points moves the age-18 result more than adding $50 a month does. That is the honest lesson: contributions are certain, returns are not. Prefer the cautious 5% view for planning and treat 10% as a hope, not a forecast.

Today's dollars vs. future dollars

Nominal projections impress and mislead: $45,000 at 18 sounds large until inflation takes its share. The today's-dollars toggle deflates every future value by 2.5% a year back to 2026 purchasing power, so the $45,000 nominal path shows as roughly $30,000 of spending power. Use nominal dollars for account statements, today's dollars for decisions — college costs and rents are also inflating, so only the deflated number tells you what the money buys. The age-65 figure shrinks even more dramatically for the same reason, which is why the toggle defaults off for the headline but belongs on for any real plan.

Frequently asked questions

Does the $1,000 deposit count toward the $5,000 cap?

No. The federal seed is separate and does not consume cap room. Only personal, family, and employer contributions share the $5,000 limit.

What if we miss a year of contributions?

Nothing breaks — the balance keeps compounding and you can resume next year. The year-by-year table above shows the gap: each missed $1,200 year at 7% costs roughly $3,800 of age-18 balance.

How do state taxes change the result?

States do not change the federal projection, but a few adjust the employer exclusion or offer 529 deductions you forgo. See our state-tax guide before choosing where extra dollars go.

Who qualifies for the $1,000 deposit?

U.S. citizen children born between January 1, 2025 and December 31, 2028 with a valid Social Security number. A parent or guardian files IRS Form 4547 to elect in.

How much can I contribute each year?

Up to $5,000 per child per year (indexed for inflation), after-tax. Employers can add up to $2,500, excluded from your income.

How is the account invested?

Until 18: only low-cost funds tracking a broad U.S. stock index. After 18 it's a traditional IRA and all normal investment options open up.

What happens at 18?

The account converts to a traditional IRA. Earnings, the $1,000 deposit, and employer money are taxed as ordinary income at withdrawal — your own after-tax contributions come back tax-free as basis. Early withdrawals before 59½ generally incur a 10% penalty on the taxable portion unless an exception applies.

Is this better than a 529?

For education savings, usually not — 529 withdrawals for qualified expenses are tax-free. For free money ($1,000) and retirement-style compounding for your kid, the Trump Account is unmatched because the deposit costs you nothing.

Are these projections guaranteed?

No. They're hypothetical illustrations at the constant return rate you chose. Real returns vary and can be negative in any year.

This tool is for education only and is not financial, tax, or legal advice. Program details reflect IRS guidance available at launch (July 2026) and may change as regulations are finalized; verify current rules at irs.gov/trumpaccounts and trumpaccounts.gov. Consult a qualified professional about your situation.