Trump Account Calculator
Trump Accounts launched July 4, 2026. Use this free investment calculator to see how your child's Trump investment account could grow over time with the $1,000 government deposit and your contributions. Works as a compound interest calculator for any contribution level.
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. Some people search 529 vs Trump Account and others search Trump Account vs 529. Either way, 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.
Trump Account eligibility: who qualifies
Any child under 18 with a US Social Security number is eligible for a Trump Account. Citizenship is not required as long as the child has an SSN. The child does not need earned income. There is no income limit for the parents or guardians who open or contribute to the account.
The $1,000 government deposit is only available for children born between January 1, 2025 and December 31, 2028. Children born before 2025 can still open a Trump Account and receive contributions, but they do not get the $1,000.
Trump Account rules at a glance
The Trump Account rules are straightforward but a few details catch people off guard. The account is locked until December 31 of the year the child turns 17. No withdrawals are allowed during the growth period. At 18 it converts to a traditional IRA and the child controls it. Contributions max out at $5,000 per year from all individual and employer sources. The government deposit and charitable contributions do not count against that cap. The money is invested in US stock index funds at launch through Bank of New York Mellon. You can transfer to a different brokerage after the account is established.
Trump Account interest rate and returns
A Trump Account does not have a fixed interest rate like a savings account. The money is invested in stock market index funds, which means returns vary year to year. The historical average annual return of the S&P 500 is roughly 10% over the long term, but individual years can range from a 30% gain to a 20% loss. Over an 18 year period the ups and downs tend to average out, which is why the calculator above lets you choose between a conservative 6%, moderate 8%, or historical 10% return rate. Think of it as an investment account, not a savings account.
What is the Trump Account $250?
You may have heard about a $250 contribution in addition to the $1,000. This is the Dell Technologies contribution. Dell committed to depositing $250 into every Trump Account opened during the first year of the program. This is separate from the government $1,000 and does not count against your $5,000 annual contribution limit. Other companies may make similar charitable contributions over time.
Frequently asked questions
What is a Trump Account for kids?
A Trump Account is a new type of investment account and IRA for children under 18. Some people call it a Trump savings account or Trump child account. It was 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.
What is the Trump Account interest rate?
There is no fixed interest rate. The money is invested in US stock index funds. Historical stock market returns average about 10% per year over the long term, but returns vary year to year. It is an investment account, not a savings account.
Who is eligible for a Trump Account?
Any child under 18 with a US Social Security number. There is no income limit for parents or guardians. The $1,000 government deposit is only for children born 2025 to 2028.
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.
Is a Trump Account an IRA?
It functions like a traditional IRA for kids. The money grows tax deferred and the account converts to a traditional IRA at age 18. You can use this calculator as an IRA calculator or retirement account calculator to see long-term projections to age 30, 55, and beyond.