Trump Account Calculator
Project a Trump Account for your child: the $1,000 federal seed for 2025–2028 births, up to $5,000 a year of contributions (employer up to $2,500), growth to 18, 30 and 65, tax on withdrawal and a comparison with a 529 — rules per IRS IR-2025-117.
| Federal pilot contribution | — |
|---|---|
| Annual contributions after the cap | — |
| Total contributed by 18 | — |
| Growth | — |
| Balance at 18 | — |
| The $1,000 alone, untouched to 18 | — |
| If left growing to 30 / 65 | — |
| After-tax value if withdrawn at 18 | — |
| Compared with a 529 at the same contributions | — |
In short
A Trump Account is a new tax-deferred account for children under 18: US-citizen children born 2025–2028 receive a $1,000 federal seed, and families can add up to $5,000 a year (employers up to $2,500 of that, tax-free) from 4 July 2026, invested in US-stock index funds. At 18 it becomes a traditional IRA — contributions come back tax-free, the seed and growth are taxed on withdrawal, with the 10% early-withdrawal penalty waived for college, a first home and other IRA exceptions.
Who this is for: US parents and grandparents of children born 2025 or later weighing a Trump Account against a 529.
Trump Accounts in brief
- Who: any US child under 18 with a Social Security number; the parent elects on Form 4547 with the tax return. Children born 2025–2028 who are US citizens get a one-time $1,000 Treasury deposit.
- Contributions: up to $5,000 a year in total from parents, relatives and friends (after-tax, not deductible); employers may add up to $2,500 of that tax-free. Contributions start 4 July 2026; the cap is indexed from 2028.
- Investments: only diversified US-stock index funds (S&P 500 or similar) with low fees, until age 18.
- At 18: the account turns into a traditional IRA. Contributions come out tax-free; the seed and earnings are taxed as income when withdrawn, with the 10% penalty before 59½ unless an exception (college, first home, disability) applies.
- Versus a 529: a 529 is tax-free for education and allows far larger contributions; a Trump Account offers the $1,000 seed, employer money and unrestricted use after 18. Many families will use both.
- Regulations are still being written — treat the mechanics as current guidance, not final.
See also: 529 College Savings Calculator, Gift & Estate Tax Calculator 2026.
Assumptions
- $1,000 seed for 2025–2028 births, growing from 2026; contributions (capped at $5,000 incl. employer up to $2,500) at the start of each year until 18.
- Growth at the return entered; no fees modelled.
- Withdrawal tax = (balance − after-tax contributions) × rate; 529 comparison uses the same contributions without the seed.
Worked example
The $1,000 seed plus 18 contributions of $2,000 — $37,000 in total — grow to about $76,100 by 2044. The seed alone would be worth $3,380. Left untouched, the balance would reach about $171,500 at 30 and roughly $1.8 million at 65 at the same 7%. Withdrawn at 18, the $40,100 of earnings and seed would owe about $4,800 of tax at 12%, leaving about $71,300. The same $36,000 in a 529 would reach about $72,800, tax-free if spent on education.
Frequently asked questions
Who gets the $1,000 Trump Account deposit?
Children who are US citizens born from 1 January 2025 to 31 December 2028, once a parent makes the election on Form 4547.
How much can I contribute to a Trump Account?
$5,000 a year in total from everyone except the government seed and qualifying charities, starting 4 July 2026; employers can contribute up to $2,500 of that tax-free.
Is the money tax-free?
No — it is tax-deferred like a traditional IRA. Contributions were after-tax so they come back untaxed; the seed and growth are taxed as income on withdrawal.
Can the money be used for college?
Yes — after 18 the education exception waives the 10% penalty, but earnings are still taxed. A 529 remains better for pure college savings.
Can grandparents contribute?
Yes — anyone can contribute, but all contributions together are capped at $5,000 a year per child (employer contributions count within it).
What if my child was born before 2025?
They can still have a Trump Account with the $5,000 annual limit; they just do not receive the $1,000 seed.
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