Trump Account Calculator
Trump Accounts launched July 4, 2026. See how much your child's account could grow over time with the $1,000 government deposit and your contributions.
Only children born Jan 1, 2025 through Dec 31, 2028 get the $1,000.
Max $5,000 per year from all individual and employer sources combined.
What is a Trump Account?
A Trump Account is a new type of IRA for children, created by the One Big Beautiful Bill Act. It launched on July 4, 2026. Parents, grandparents, or guardians can open one for any child under 18 with a Social Security number. The account grows tax deferred, like a traditional IRA, and converts to a regular IRA when the child turns 18.
The $1,000 government deposit
Children born between January 1, 2025 and December 31, 2028 get a one-time $1,000 deposit from the US Treasury. This is free money. You do not need to contribute anything else, though you can. Children born before 2025 can still open a Trump Account, they just do not get the $1,000.
How to open a Trump Account
File IRS Form 4547 through trumpaccounts.gov, through your IRS online account, or on paper with your tax return. A legal guardian, parent, adult sibling, or grandparent can open the account. Once open, contributions can come from anyone: parents, grandparents, friends, and even employers up to $2,500 per worker per year.
Contribution limits
Up to $5,000 per year from all individual and employer sources combined. Government and charitable contributions do not count against the $5,000 limit. Contributions are made with after-tax dollars. The $5,000 limit adjusts for inflation starting in 2028.
When can the money be used?
The account is locked during the growth period, until December 31 of the year your child turns 17. At 18 the account converts to a traditional IRA. Withdrawals after that follow normal IRA rules, with the usual exceptions for first home purchase, education, medical expenses, and more. Early withdrawals before age 59 and a half face a 10 percent penalty plus income tax.
Trump Account vs 529 plan
This is the question every parent is asking right now. They serve different purposes, and many families will benefit from having both. Here is the side by side.
| Trump Account | 529 Plan | |
|---|---|---|
| Who it is for | Any child under 18 | Any beneficiary, any age |
| Free government money | $1,000 for kids born 2025 to 2028 | None |
| Annual contribution limit | $5,000 | No federal limit (state limits vary, typically $300,000+ lifetime) |
| Tax treatment going in | After-tax dollars | After-tax dollars |
| Tax treatment growing | Tax deferred | Tax free |
| Tax on withdrawals | Taxed as income (like traditional IRA) | Tax free if used for education |
| What you can spend it on | Anything after age 18 | Education expenses only (or 10% penalty) |
| Withdrawals before 18 | Not allowed during growth period | Allowed anytime for education |
| Invested in | US stock index funds | Your choice of funds |
| Converts at 18 | Becomes a traditional IRA | Stays a 529 (can roll to Roth IRA) |
The short answer: if you are saving specifically for college, a 529 wins on taxes because qualified withdrawals are completely tax free. If you want flexible savings your child can use for anything, a home, starting a business, retirement, a Trump Account gives that freedom. The $1,000 government deposit makes a Trump Account worth opening regardless, since it is free money with zero effort.
Frequently asked questions
What is a Trump Account for kids?
A Trump Account is a new type of IRA for children under 18, created by the One Big Beautiful Bill Act and launched July 4, 2026. Children born 2025 to 2028 receive a $1,000 government deposit. Families can contribute up to $5,000 per year. The money grows tax deferred and converts to a traditional IRA at 18.
Is a Trump Account better than a 529 plan?
They serve different purposes. A 529 is specifically for education expenses and offers tax-free withdrawals for qualified education costs. A Trump Account has no restriction on what the money is used for after age 18, but withdrawals are taxed as income. Many families may benefit from having both.
Do I need earned income to contribute?
No. Unlike traditional IRAs, Trump Accounts do not require earned income for contributions before the child turns 18. Anyone can contribute up to the $5,000 annual limit.
What is the money invested in?
At launch, accounts are managed by Bank of New York Mellon and invested in US stock index funds. After the account is established, families can transfer the balance to a brokerage firm of their choice.
Can I open a Trump Account for my grandchild?
Yes, if a higher priority person (legal guardian or parent) is not available. The priority order is: legal guardian, parent, adult sibling, grandparent.