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).
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.
Frequently asked questions
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.