πΆ Trump Account Growth Calculator
The $1,000 federal seed, grown to age 18.
Projected value at age 18
Estimates for planning only, not financial advice.
A child born in 2026 gets the $1,000 federal seed plus, say, $2,400 a year from family at 7 percent growth. By age 18 the account holds about $84,978: the seed grew to roughly $3,380 and the contributions to about $81,598. Eighteen years of compounding does the heavy lifting; the seed is the headline, your contributions are the engine.
How to Use This Calculator
Enter the child's birth year, your planned annual contribution, and an expected return. The calculator checks $1,000-seed eligibility (US citizen children born 2025-2028), compounds the seed and contributions to age 18, and respects the $5,000 annual contribution limit.
Enter birth year. Only 2025-2028 births get the federal $1,000; other children can still open accounts.
Enter annual family contributions up to $5,000. Employer contributions (up to $2,500/year) are separate.
Set a return. The account must hold broad US index funds charging 0.1% or less, so 6-8 percent is the honest range.
The Rules (Section 530A)
Created by the One Big Beautiful Bill Act in July 2025, Trump Accounts are legally a new kind of traditional IRA for children. Treasury auto-enrolled eligible children starting October 2026, but parents must claim the account to manage it. During the growth years the money must sit in qualifying index funds; the default is currently an S&P 500 ETF. At 18 it converts to a standard traditional IRA.
Worked Example
Child born 2026, 18 growth years to age 18, 7 percent return, $2,400 annual contributions. Seed: 1,000 x 1.07^18 = $3,379.93. Contributions (end-of-year annuity): 2,400 x ((1.07^18 - 1) / 0.07) = 2,400 x 33.999 = $81,597.68. Total: $84,977.61, rounded to $84,978. Total put in: $1,000 + 18 x $2,400 = $44,200, so compounding contributed about $40,778, nearly doubling the money. Start at birth and contributions dominate; start at age 9 and the same $2,400 a year reaches only about $33,200, because you lose half the compounding years.
Trump Account vs 529 vs Roth for Kids
| Feature | Trump Account | 529 plan | Custodial Roth |
|---|---|---|---|
| Best for | General wealth start | Education expenses | Retirement (needs earned income) |
| 2026 contribution limit | $5,000 | Very high (state-set) | $7,000 (needs earnings) |
| Free federal money | $1,000 (2025-28 births) | No | No |
| Investment choice | Index funds only | State plan menus | Anything |
| Use before 18 | Barred | Education only (penalty otherwise) | Contributions withdrawable |
They complement rather than compete: 529 for education, Trump Account as a no-brainer starter pot (free $1,000 for eligible births), custodial Roth once the child has earned income. If education is the goal, the 529's tax-free withdrawals for qualified expenses still beat the Trump Account's traditional-IRA treatment at 18.
Should You Contribute Beyond the Seed?
The $1,000 is free money: claim it. Beyond that, compare against your alternatives. The account's strengths are tax-deferred growth and forced long-term compounding; its weaknesses are the index-only restriction and the lockup until 18. If you are already maxing 401(k) matches and 529 contributions, the Trump Account is a fine next dollar. If not, fund the match and the 529 first. And contribute early in the child's life: the same $2,400 a year started at birth is worth roughly double the same contributions started at age 9.
From 18 to 65: What the Seed Becomes
The calculator stops at 18, but the money does not have to. At 18 the account becomes a traditional IRA; leave the $84,978 invested at 7 percent and never add another dollar, and by 65 it is worth about $2.04 million (47 years of compounding: 84,978 x 1.07^47). That is the real power of the 2025-2028 seed program: a $1,000 federal deposit plus family contributions in childhood becomes a retirement-scale asset through nothing but time.
The lesson generalizes beyond this specific program. Every dollar invested at birth is worth roughly $81 at 65 at 7 percent; every dollar invested at 35 is worth about $7.60. Childhood is the highest-return investing window anyone ever gets, which is why the account's lockup until 18 is a feature, not a bug: it protects the compounding from its owner. If you do nothing else, claim the seed and let the calendar work.
A Head Start, Not a Retirement Plan
Trump Accounts give every eligible newborn a $1,000 seed with decades of compounding ahead: at 7 percent, each birth dollar becomes about $81 by age 65. But $1,000 compounding alone, roughly $81,000 at 65, is a foundation, not a finish line. The account's real power comes from the annual contributions it permits through age 18: families who add steadily can build six-figure balances before the child even starts working.
Treat it as the first layer of a college-and-retirement stack, not the whole plan. Pair it with 529 contributions for education and Roth IRA contributions once the child has earned income; each vehicle has tax advantages the others lack. And start early with your own contributions: the seed's 65-year runway is fixed, but every contribution year you add is another decade of compounding most savers never get. Time is the account's superpower. Use all of it.
Estimates for planning only, not financial advice.
Frequently Asked Questions
What is a Trump Account?
A tax-advantaged investment account for children created under the One Big Beautiful Bill Act (IRC Section 530A). It works like a traditional IRA for a minor: tax-deferred growth, index-fund investments, no withdrawals until age 18, when it converts to a standard IRA.
Who gets the $1,000 Trump Account deposit?
US citizen children with Social Security numbers born between January 1, 2025 and December 31, 2028. Treasury began auto-creating accounts in October 2026, but a parent or guardian must claim the account to manage it and enable contributions. Miss the claim and the account sits unmanaged; the $1,000 is still there, but no contributions can flow until a guardian takes charge.
How much can I contribute to a Trump Account?
$5,000 per year from family and friends (indexed to inflation in later years). Employers can contribute up to $2,500 more per year under separate rules. The $1,000 federal seed does not count against the limit. Spread across birthdays and holidays, the family cap is reachable for many households: $417 a month from all sources combined hits it.
What can a Trump Account invest in?
During the growth years, only qualifying broad US equity index mutual funds or ETFs charging 0.1% or less annually, such as S&P 500 index funds. Individual stocks, active funds, and bonds do not qualify until the account converts at 18.
Can I withdraw from a Trump Account early?
Generally no. Withdrawals are barred until the year the beneficiary turns 18, with limited hardship exceptions. This lockup is the price of the tax treatment; do not put emergency money here. Think of it as a feature: the lockup protects decades of compounding from teenage impulses and parental emergencies alike.
Is a Trump Account better than a 529?
Different jobs. A 529 offers tax-free withdrawals for education expenses and much higher contribution limits, making it better for college savings. The Trump Account is a general wealth starter with a free $1,000 kicker. Many families will sensibly use both.
Do Trump Accounts affect financial aid?
As child-owned retirement-style accounts, they are generally treated more favorably than custodial accounts in aid formulas, but rules are still being clarified. Do not assume; check current Department of Education guidance before counting on a specific treatment. Custodial UGMA/UTMA accounts, by contrast, are assessed heavily against aid, which is one more reason the Trump Account's structure matters.
What happens at age 18?
The account converts to a standard traditional IRA in the beneficiary's name, with normal IRA contribution, distribution, and required-minimum-distribution rules applying from there. The tax-deferred growth continues if left invested. The new adult can then roll it, convert portions to Roth, or simply let it compound: at 7 percent, the age-18 balance roughly doubles every decade.
Are Trump Account contributions tax deductible?
Contributions are generally not deductible for the contributor (unlike traditional IRA contributions for eligible filers); the benefit is tax-deferred growth. Employer contributions up to the limit are excluded from the employee's income. The real subsidy is the $1,000 seed plus decades of tax-deferred compounding, not a deduction, so fund it with after-tax dollars guilt-free.
How do I claim my child's Trump Account?
Through the official Trump Accounts app or website (trumpaccounts.gov), or IRS Form 4547. Use only official government channels; scammers are already targeting families with fake account-setup sites. Claiming is free. If anyone asks for payment or your child's full financial details to 'set up' the account, it is a scam: the government never charges for this.