What is a Trump Account calculator?
A Trump Account calculator projects how a new federal savings account for kids (IRS Section 530A, created by the One Big Beautiful Bill Act) could grow. It checks whether your child qualifies for the one-time $1,000 government seed contribution, then models growth from your own contributions — both by the time the account unlocks at 18, and further out, since the account converts to a Traditional IRA at that point and can keep growing untouched for decades.
How to use this calculator
- Pick your child's birth year. Only children born 2025–2028 qualify for the $1,000 government seed — the calculator tells you either way.
- Enter your planned annual contribution (up to the $5,000/year federal cap) and your expected annual return.
- Choose a retirement age to see both the balance at 18 and the projected value if it's left untouched until then.
How the math works
The seed money (if eligible) and your annual contributions compound annually at your chosen rate until the child turns 18: FV = Seed × (1+r)n + PMT × [(1+r)n − 1] / r. From 18 to your chosen retirement age, that balance keeps compounding at the same rate with no further contributions modeled — a conservative estimate, since the account holder could keep contributing under Traditional IRA rules from that point on.
Example
Suppose your child is born in 2026 (eligible for the $1,000 seed), you contribute $1,200/year ($100/month), and your investments grow at 10% annually. By age 18, the account holds about $60,279. Left untouched until age 65, that grows to roughly $5,316,450 — the power of nearly 50 extra years of compounding on top of an early start.
Frequently asked questions
What is a Trump Account?
A Trump Account (IRS Section 530A, created by the One Big Beautiful Bill Act) is a new tax-advantaged custodial account for children under 18, similar to a locked IRA. It can receive a one-time $1,000 government contribution plus up to $5,000/year (inflation-adjusted) in individual contributions, invested only in low-cost broad-market index funds until the child turns 18.
Who qualifies for the $1,000 government seed money?
Only U.S. citizens with a valid Social Security number who were born between January 1, 2025 and December 31, 2028. The seed is a one-time pilot-program contribution and requires an active election — it is not automatic — via IRS Form 4547 or trumpaccounts.gov.
How much can I contribute to a Trump Account?
Up to $5,000 per year (inflation-adjusted) per child, from parents, relatives, or others, using after-tax dollars. The first individual contribution can't be made until after July 4, 2026. Contributions must go into low-cost (0.1% expense ratio or less) broad U.S. stock index funds — no cash positions, no stock-picking.
Can I withdraw money before the child turns 18?
No, with narrow exceptions (death of the beneficiary, transfer to an ABLE account at 17, or transfer to another Trump Account). The money is locked until January 1 of the year the child turns 18.
What happens to a Trump Account when the child turns 18?
On January 1 of the year the child turns 18, the account starts following Traditional IRA rules, including the 10% early-withdrawal penalty framework. It technically remains a Trump Account until the balance transfers into an actual Traditional IRA in the child's name.