Trump Account Calculator (2026)
Trump Accounts are new investment accounts for American children, opened from July 4, 2026. Babies born from 2025 to 2028 get a free $1,000 from the Treasury, and families can add up to $5,000 a year. See how much the account could be worth when your child turns 18.
How Trump Accounts work
A Trump Account is an investment account in a child's name, created by the 2025 tax law. The money is invested in a low-cost fund that tracks the US stock market. Until the child turns 18, nobody can take money out. After that, the account works like a traditional IRA.
Key rules
Examples at 7% a year
Stock market returns change every year and can be negative. 7% is a common long-term assumption, not a promise.
Taxes when the money comes out
From age 18 the account follows traditional IRA rules. Money your family put in after tax is not taxed again, but growth, the $1,000 government deposit and employer money are taxed as income when withdrawn. Withdrawals before age 59½ can also face a 10% penalty, with exceptions such as college costs, a first home or certain medical bills.
How to open one
Parents can sign up at TrumpAccount.gov or file IRS Form 4547 with their tax return. To get the $1,000 deposit for a child born from 2025 to 2028, choose the pilot deposit when you enroll.
How this calculator works
It starts with the $1,000 deposit if your child qualifies, then adds the family and employer money at the end of each year from 2026 until the child turns 18. Family plus employer money is capped at $5,000 a year. Growth uses your expected return minus the 0.1% maximum fund fee. The "today's dollars" figure adjusts for 3% yearly inflation.
FAQ
Who gets the free $1,000?
US citizen children with a Social Security number born from January 1, 2025 through December 31, 2028, once a parent opens the account and opts in.
Can older children have a Trump Account?
Yes. Children under 18 can have an account and receive contributions, but only those born 2025 to 2028 get the $1,000 Treasury deposit.
Are contributions tax-deductible?
No. Family contributions are made with after-tax money. Employer contributions up to $2,500 are tax-free for the parent.
When can the money be used?
Starting in the year the child turns 18. After that it follows traditional IRA rules, including possible taxes and penalties.
Is a 529 plan better for college?
For college only, a 529 can be better because qualified withdrawals are tax-free. Many families use both.
Rules and rates last checked: October 2026. This is an estimate for general information only, not financial, tax or legal advice. Check IRS.gov or a tax professional before you file.