How to use this calculator
- Choose the child’s birth year. It sets how many years of contributions are left: contributions started on July 4, 2026 and end with the year the child turns 17.
- Tick the $1,000 deposit if the child is a U.S. citizen born from 2025 through 2028 and you’ve elected it.
- Enter yearly contributions from family and, if a parent’s employer offers it, from the employer. The calculator caps the total at $5,000 a year.
- Set a return and fee. The account must hold a low-cost U.S. stock index fund until the child turns 18, so try a lower return too: stock returns vary from year to year.
The projection adds a year’s contributions at the end of each year and assumes the same return every year. Real balances will move up and down with the stock market.
How Trump Accounts work
Trump Accounts were created by the 2025 tax law (Public Law 119-21). Each is a special kind of individual retirement account (IRA) for a child under 18, and they work in two phases:
- The growth period, from when the account opens until December 31 of the year the child turns 17. Family, employers, governments and charities can contribute, the money must be invested in an eligible U.S. stock index fund, and it generally can’t be taken out.
- From the year the child turns 18, the account follows the rules for a traditional IRA. It belongs to the child, can be invested more broadly, and money can be withdrawn under the usual IRA rules.
Growth isn’t taxed while the money stays in the account. Contributions from parents and others aren’t deductible, but they also aren’t taxed again when they come out.
What a Trump Account could grow to
Balance at 18 for a child born in 2026 who gets the $1,000 deposit, with the same contribution every year and a 0.1% yearly fee:
| Yearly contribution | Total put in | At 5% a year | At 7% a year |
|---|---|---|---|
| Nothing (the $1,000 only) | $1,000 | $2,366 | $3,324 |
| $300 ($25/month) | $6,400 | $10,727 | $13,426 |
| $600 ($50/month) | $11,800 | $19,088 | $23,528 |
| $1,200 ($100/month) | $22,600 | $35,811 | $43,733 |
| $2,400 ($200/month) | $44,200 | $69,257 | $84,142 |
| $3,000 ($250/month) | $55,000 | $85,980 | $104,346 |
| $5,000 (the limit) | $91,000 | $141,722 | $171,695 |
Even without contributions, the $1,000 deposit could grow to about $3,324 by 18 at 7% a year. Adding $100 a month brings it to about $43,733. Left invested with no more contributions, that balance could reach about $1,006,370 by 65, though inflation would reduce what it buys. The compound interest calculator shows how growth like this adds up.
What the $1,000 deposit alone could be worth
If no one adds a dollar, the $1,000 Treasury deposit for a child born in 2026 grows like this, after the 0.1% fund fee. The balances at 30 and 65 assume the money stays invested after 18:
| Yearly return | At 18 | At 30 | At 65 |
|---|---|---|---|
| 4% | $1,991 | $3,151 | $12,023 |
| 6% | $2,806 | $5,583 | $41,518 |
| 8% | $3,930 | $9,787 | $140,086 |
| 10% | $5,470 | $16,980 | $462,221 |
U.S. stocks have returned roughly 10% a year over the long run before inflation, but no return is guaranteed, and a lower figure such as 6% or 7% is a more cautious planning number. The figures aren’t adjusted for inflation.
Contribution rules and limits
- $5,000 a year from all individuals and employers combined, starting July 4, 2026. The limit will be adjusted for inflation after 2027. Our contribution limits page lists this limit next to the 401(k), IRA and HSA limits.
- Employers can add up to $2,500 a year for an employee’s child, and it isn’t taxable income to the employee. It counts toward the $5,000 limit.
- The $1,000 pilot deposit from the Treasury, and contributions from governments and charities to broad groups of children, don’t count toward the limit. Several companies and philanthropists have pledged deposits of this kind, such as the Dell $250 deposit.
- No contributions after the growth period, which ends with the year the child turns 17. The child doesn’t need earned income, unlike a Roth IRA.
The Dell $250 deposit for children born before 2025
In December 2025, Michael and Susan Dell pledged $6.25 billion to put $250 into the Trump Accounts of about 25 million children age 10 and under who were born too early for the $1,000 federal deposit. Eligibility depends on where the child lives: children in ZIP codes whose median income is below a set level qualify, whatever their family’s own income. Invest America, the nonprofit handling the gift, has the details.
The money only arrives once a parent has opened the account with Form 4547 or at trumpaccounts.gov. It doesn’t count toward the $5,000 yearly limit. Left invested at 7%, $250 for a child born in 2018 could grow to about $487 by 18. To include it in the calculator, enter $250 under one-time deposits.
Withdrawals and taxes at 18
From January 1 of the year the child turns 18, the account is treated like a traditional IRA. When money comes out, the part that came from after-tax contributions is tax-free, and the rest (the earnings, employer contributions and the $1,000 deposit) is taxed as ordinary income. Withdrawals before age 59½ generally also owe a 10% additional tax, unless an IRA exception applies, such as paying for higher education or up to $10,000 toward a first home.
Because of that, a Trump Account works best as long-term money: a head start on retirement savings, or on a first home. For college costs, a 529 plan is usually more tax-efficient.
Trump Account vs. 529 plan vs. custodial Roth IRA
| Item | Trump Account | 529 plan | Custodial Roth IRA |
|---|---|---|---|
| Who can contribute | Anyone, up to $5,000 a year combined, plus employers | Anyone; high limits set by each state | Up to the child’s earned income, within the yearly IRA limit |
| Needs the child to have a job? | No | No | Yes |
| Government deposit | $1,000 for children born 2025–2028 | Some states offer small seed deposits | No |
| Tax on the growth | Taxed as income when withdrawn | Tax-free for qualified education costs | Tax-free in retirement |
| Investments | U.S. stock index funds until 18 | The plan’s menu, often age-based | Almost anything |
Many families use more than one: claim the free $1,000 in a Trump Account, save for college in a 529 plan, and, once a teenager has a job, add a Roth IRA.
How to open one and claim the $1,000
- Make the election on IRS Form 4547, which you can file with your tax return, or online at trumpaccounts.gov. The child needs a Social Security number.
- Ask for the pilot deposit in the same election if the child was born from 2025 through 2028 and is a U.S. citizen. The Treasury deposits the $1,000 into the account once it’s set up.
- Add contributions once the account is open, and ask your employer whether it contributes for employees’ children.
The IRS has reported that 4 million children have been signed up, including 1 million claiming the $1,000 deposit. The rules are new, and Treasury and the IRS are still finalizing regulations, so check trumpaccounts.gov for the latest details.
Frequently asked questions
Who gets the $1,000 Trump Account deposit?
How much can I put in a Trump Account each year?
Can my child use the money before 18?
Are Trump Account contributions tax-deductible?
What can a Trump Account invest in?
How much will the $1,000 Trump Account deposit be worth at 18?
Who gets the Dell $250 Trump Account deposit?
When can I start contributing to a Trump Account?
Sources
- Treasury, IRS issue guidance on Trump Accounts (Notice 2025-68) — Internal Revenue Service
- Proposed regulations for the Trump Accounts contribution pilot program — Internal Revenue Service
- Proposed regulations on eligible investments for Trump Accounts — Internal Revenue Service
- Trump Accounts — U.S. Securities and Exchange Commission (Investor.gov)
- Trump Accounts: overview and policy considerations — Congressional Research Service
- Trump Accounts — U.S. Department of the Treasury
- Michael and Susan Dell pledge $6.25 billion for 25 million Trump Accounts — NBC News