Trump Account Calculator

1. Enter the child current age and choose whether to include the $1,000 federal seed. The horizon runs to the year the child turns 18.
2. Add your yearly contribution and any employer amount. The two together are capped at $5,000 a year in this estimate.
3. Set your expected return, fund expense ratio and inflation, then read the projected balance, the growth, and the value in today dollars.

A Trump Account is a new, tax-deferred investment account for children, created by the 2025 reconciliation law (the One Big Beautiful Bill Act, section 70204, adding Internal Revenue Code section 530A). Each eligible child gets a one-time $1,000 federal seed deposit, and family, employers and others can add more each year. The money is invested in low-cost funds that track the S and P 500 or another mostly-US stock index.

The pilot $1,000 seed is for a US-citizen child born January 1, 2025 through December 31, 2028. The account grows tax-deferred, cannot be tapped before the year the child turns 18, and then converts to a traditional IRA. This calculator projects its value using the program rules and your own return, fee and inflation assumptions. For a tax-advantaged education account instead, compare the 529 college savings calculator.

The tool grows the $1,000 seed and your yearly contributions to the year the child turns 18, using annual compounding at a net return equal to your expected return minus the fund expense ratio.

1. Horizon. n = 18 minus the child current age, in whole years.
2. Net return. r = expected return minus the fund expense ratio, both yours to set.
3. Seed. The one-time $1,000 grows for the full n years.
4. Contributions. Treated as an ordinary annuity (paid at the end of each year), capped at $5,000 a year including any employer amount.
5. Real value. The future balance is divided by (1 + inflation)^n to show today dollars.

Expected return, fee and inflation are your inputs, not promises. A broad index fund has no guaranteed return, and the example 7 percent is only a planning figure. To explore compounding on its own, see the compound interest calculator or the future value calculator.

Every figure below was computed in code from the formula above, so the page and the math cannot drift apart. The horizon is 18 years for a newborn, and the return shown is a net 7 percent (a 7 percent return with no fee, for a clean illustration).

In the first row the seed grows to $3,380 and the $2,000 yearly contributions grow to $67,998, for about $71,378 at age 18. At 2.5 percent inflation that is roughly $45,765 in today dollars. The default tool example uses a 0.10 percent fund expense ratio, which trims the result slightly below these no-fee figures.

These program rules come from IRS Notice 2025-68 and the IRS newsroom guidance on Trump Accounts. The calculator applies the money limits; you supply the market assumptions.

Both accounts invest for a child, but their tax treatment and rules differ. The calculator uses the same contributions and return for each, so any difference you care about is in the tax rules, not the math.

Because the tax rules differ, the same ending balance is not worth the same after tax. Model a 529 on the same assumptions with the college savings calculator, then weigh the tax treatment for your family goal.

Expected Return

This is the biggest lever and the least certain. Stock returns vary year to year and are not guaranteed. Test a lower figure, such as 5 or 6 percent, to see a more cautious outcome, not just the 7 percent example.

Fund Expense Ratio

Trump Accounts require low-cost index funds. A 0.03 percent fund keeps almost all of the return; a 0.10 percent fund costs a little more. The tool subtracts this fee from your return every year.

How Early You Start

A newborn has 18 years of compounding; a 10-year-old has 8. Starting earlier gives the seed and each contribution far longer to grow.

Yearly Contribution

More money in, up to the $5,000 limit, means a larger balance. The tool caps family and employer money together at $5,000.

Inflation

Inflation does not change the future dollar balance, but it lowers what those dollars will buy. The today-dollars figure shows the real value.

Deciding How Much to Contribute

Compare $2,000, $3,000 and the full $5,000 a year to see how the balance at 18 changes before you commit to a monthly amount.

Comparing with a 529

Run the same numbers here and in the college savings calculator, then decide which tax treatment fits an education goal versus a general nest egg.

Checking the Power of the Seed

The Seed grown to age 18 result isolates what the one-time $1,000 is projected to become, which helps when you decide whether to add more. For a quick doubling-time estimate, the Rule of 72 calculator is a handy cross-check.

1. Counting the Seed Against the Limit

The $1,000 federal seed is separate. You can still contribute up to $5,000 on top of it.

2. Expecting to Contribute Before July 4, 2026

Contributions cannot be made before that date, even for a child already born.

3. Treating the Return as Guaranteed

7 percent is an example. Markets can fall, and a long run of weak returns would leave a smaller balance.

4. Ignoring the Expense Ratio

Fees compound against you. A high-fee fund would not meet the low-cost rule and would drag on growth.

5. Planning to Withdraw Early

The account is locked until the year the child turns 18, then becomes a traditional IRA with its own rules.

6. Confusing It with a 529

A 529 is tax-free for education; a Trump Account is tax-deferred and later taxed as an IRA. They are not interchangeable.

The calculator reproduces the compound-growth math exactly for the inputs you give. It is a projection, not a promise, because the return is an assumption.

It is a new tax-deferred investment account for children under the 2025 law. Each eligible child gets a one-time $1,000 federal seed, and families can add up to $5,000 a year, invested in low-cost US stock index funds. It is locked until the year the child turns 18.

The one-time $1,000 seed is for a US-citizen child born January 1, 2025 through December 31, 2028. The seed does not count toward the yearly contribution limit.

Total non-employer contributions are capped at $5,000 a year for 2026 and 2027, indexed for inflation after 2027. An employer may add up to $2,500, and that counts inside the same $5,000 limit.

No contributions may be made before July 4, 2026, even for a child already born. The $1,000 federal seed is handled separately by the program.

There are no withdrawals before January 1 of the year the child turns 18. At that point the account becomes a traditional IRA and follows IRA rules.

Mutual funds or ETFs that track the S and P 500 or another mostly-US-equity index. The guidance requires low-cost index funds, which is why the calculator asks for a small fund expense ratio.

The IRS newsroom guidance states that low-cost index funds are required but does not publish a single numeric expense-ratio cap. This tool treats the expense ratio as your input with a low example default, rather than asserting a fixed cap.

The $1,000 seed and your yearly contributions grow with annual compounding at a net return equal to your expected return minus the fund expense ratio, to the year the child turns 18. Contributions are treated as an ordinary annuity.

They serve different goals. A 529 grows tax-free for qualified education; a Trump Account is tax-deferred and becomes a traditional IRA. Compare both on the same assumptions and weigh the tax treatment for your plan.

No. The expected return, fee and inflation are example assumptions you set. Real market returns vary and can be negative in some years. Treat the result as an estimate, not a promise.

No. The calculation runs in your browser and nothing is sent to our servers. Anything you choose to Save stays in this browser only.

• Notice 2025-68, guidance on Trump Accounts under IRC section 530A (IRS, read 2026-10-06).
• Treasury, IRS issue guidance on Trump Accounts established under the Working Families Tax Cuts (IRS newsroom, read 2026-10-06).
• Understanding Trump Accounts (IRS, read 2026-10-06).
• One Big Beautiful Bill Act, section 70204 (Internal Revenue Code section 530A) (Congress.gov, read 2026-10-06).