Trump Account Calculator
Trump Accounts are open for contributions as of July 4, 2026. Children born 2025–2028 get a one-time $1,000 federal pilot deposit, family and employer contributions are capped at $5,000 per year combined, and an employer can add up to $2,500 a year per employee tax-free, shared across that employee's children (employers report it in W-2 Box 12 code TA). Project the balance to age 18 and see what survives tax at withdrawal.
| Year | Age | Balance |
|---|---|---|
| 2026 | 0 | $3,500 |
| 2029 | 3 | $12,325 |
| 2032 | 6 | $23,136 |
| 2035 | 9 | $36,380 |
| 2038 | 12 | $52,604 |
| 2041 | 15 | $72,479 |
| 2043 | 17 | $88,156 |
- Withdraw for college / first home (no 10% penalty)
- $82,978
- Withdraw for anything else (10% penalty applies)
- $78,662
- Leave it invested until age 60
- $1,511,376
After 18 the account follows traditional IRA rules: your own contributions come back tax-free, everything else is ordinary income, plus a 10% additional tax unless one of the IRA early-distribution exceptions in IRC §72(t)(2) applies, such as qualified higher education, a first-home purchase up to $10,000, disability, or reaching age 59½.
The 529 column excludes the $1,000 pilot, employer money, and any charity seed — those only exist inside a Trump Account. For pure education savings of your own money, a 529's tax-free growth usually wins; the Trump Account's edge is the free deposits and non-education flexibility.
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How Trump Accounts Work
The $1,000 Pilot Deposit
One-time Treasury contribution for a qualifying child (IRC §152(c)) who is a U.S. citizen born 2025–2028 with an SSN. Claimed on IRS Form 4547 (paper or through your IRS online account). Exempt from the annual cap.
Contribution Caps
$5,000 per year combined for family plus employer money (indexed after 2027). The employer slice is capped at $2,500 a year per employee, however many children the employee has, and is excluded from the employee's income. State and charity seeds sit outside the cap.
Locked-In Index Investing
Until 18, funds must sit in mutual funds or ETFs tracking a U.S. stock index (like the S&P 500), with no leverage and annual fees of 0.1% or less.
Tax at Withdrawal
Traditional IRA rules from the year the child turns 18. Family contributions are basis, recovered tax-free pro rata with each withdrawal; the pilot, employer money, and earnings are ordinary income, with a 10% additional tax unless one of the IRA early-distribution exceptions applies.
Frequently asked questions
Who is eligible for the $1,000 pilot deposit?
A child who is your qualifying child (IRC §152(c)), is a U.S. citizen, was born after December 31, 2024, and before January 1, 2029, and has an SSN issued before the election. One election per child, filed on Form 4547 (paper, or electronically through your IRS online account).
How much can be contributed each year?
$5,000 combined per year from family and employer sources (COLA-indexed after 2027). An employer can exclude up to $2,500 a year per employee from the employee's income, and that limit is shared across all of the employee's children's accounts. The pilot deposit, government, and charity contributions don't count toward the cap.
How are withdrawals taxed?
Nothing comes out before the year the child turns 18. After that, the account is treated like a traditional IRA: family contributions are basis, recovered tax-free pro rata with each withdrawal; everything else is ordinary income plus a 10% additional tax unless one of the IRA early-distribution exceptions in IRC §72(t)(2) applies, such as qualified higher education expenses, a first home (up to $10,000), disability, or reaching age 59½.
Is a Trump Account better than a 529?
For education-only savings of your own money, the 529's tax-free growth usually wins. The Trump Account's edge is the free money — the $1,000 pilot and employer contributions — plus non-education flexibility. The calculator above compares both side by side.
Sources
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