How the Trump Account works (2026)
A Trump Account is a new tax-deferred investment account for children, created by the One Big Beautiful Bill Act. Under a federal pilot beginning in July 2026, every eligible child born between 2025 and 2028 receives a $1,000 government seed deposited into an account invested in a low-cost U.S. stock index fund.
- Who qualifies: U.S.-citizen children with a Social Security number; the $1,000 seed is for births in 2025–2028.
- Contribution limit: up to $5,000 per year from family until the year the child turns 18.
- Employer contributions: up to $2,500 per year, which count toward the $5,000 limit and are excluded from the child's taxable income.
- The federal seed and other government/charity contributions do not count toward your $5,000 limit.
- Access: no withdrawals before age 18. At 18 the account rolls into Traditional IRA treatment.
How much will a Trump Account be worth in 2026 and beyond?
It depends on the seed, your contributions, and the return. The calculator above shows your exact projection with a year-by-year chart. The table below is a quick reference at a 7% average return with the $1,000 seed plus the stated yearly family contribution, projected to age 18.
| Yearly contribution | Total contributed by 18 | Est. balance at 18 (7%) |
|---|---|---|
| $0 (seed only) | $1,000 | ~$3,380 |
| $1,000/yr | $19,000 | ~$39,800 |
| $2,500/yr | $46,000 | ~$94,300 |
| $5,000/yr (max) | $91,000 | ~$185,300 |
Trump Account vs 529 plan vs custodial Roth IRA
The right account depends on what the money is for. See our full Trump Account vs 529 comparison for detail.
| Feature | Trump Account | 529 plan | Custodial Roth IRA |
|---|---|---|---|
| $1,000 federal seed | ✅ Yes (2025–28) | ❌ No | ❌ No |
| Growth taxed? | Ordinary income at withdrawal | Tax-free for education | Tax-free in retirement |
| Annual limit | $5,000 | Very high (gift-tax) | Child's earned income |
| Best for | Flexible head start | College savings | Long-term tax-free growth |
Frequently asked questions
Is the $1,000 Trump Account seed really free?
Yes. Under the pilot program the U.S. Treasury deposits $1,000 into the account of each eligible child born 2025–2028. It does not count against your $5,000 annual contribution limit.
Can I open a Trump Account for a child born before 2025?
Children born before 2025 are not eligible for the $1,000 federal seed, but accounts may still be opened and funded under the program rules. Use the calculator with a $0 seed to model that case.
How is a Trump Account taxed when my child withdraws?
It follows Traditional IRA rules: the money you contributed comes out tax-free, and the investment growth is taxed as ordinary income. Withdrawals before age 59½ may also face a 10% penalty unless an exception applies. This calculator gives an estimate — confirm with a tax professional.
What return should I assume?
The accounts are invested in a U.S. stock index fund. Long-run stock returns have historically averaged roughly 7–10% per year before inflation, but returns are never guaranteed. Try a few rates to see the range.
Does this tool store my information?
No. Every calculation runs entirely in your browser. Nothing you type is uploaded or saved on a server.
Methodology & sources
Projections use standard compound-growth math (contributions at the start of each year, stopping the year the child turns 18). Program rules are taken from primary sources:
- One Big Beautiful Bill Act (P.L. 119-21) — Trump Account provisions
- IRS.gov — account tax treatment and contribution limits
- Congress.gov — statutory text
Spotted an error? Tell us — we update for accuracy.
Disclaimer: This calculator is an educational estimate based on publicly available information about the 2026 Trump Account program and is not financial, tax, or legal advice. Final rules may change as regulations are issued. Verify details with the IRS and a qualified professional before making decisions.