Trump Account Calculator
The new account for kids: a $1,000 government deposit for babies born 2025 to 2028, up to $5,000 a year, and what it grows to.
At 18, when it becomes their IRA
$44,442
From $19,000 put in, including the $1,000 government deposit.
- Left invested until 65$1,654,676about $242,266 in today’s dollars
- Comes out tax-free$18,000what your family put in
- Taxed as income when withdrawn$1,636,676growth, plus employer and government money
Trump Account
Start the year they’re born
Every year of waiting is a year less of compounding. The $1,000 deposit alone, left invested at 8%, is worth about $148,780 by 65.
An estimate under the rules as of 2026. Contributions can start July 4, 2026; check IRS guidance as details are finalized.
How Trump Accounts work
Who gets one
Any child under 18 with a Social Security number can have a Trump Account. U.S. citizens born from 2025 through 2028 can also get a one-time $1,000 deposit from the federal government. You open the account and elect the deposit on IRS Form 4547 or through the program’s website.
What goes in
Families can add up to $5,000 a year (from July 4, 2026), and employers can put in up to $2,500 of that, tax-free to the parent. Government and charity deposits, like the $1,000 and pledges such as the Dell family’s $250, don’t count against the limit. Contributions stop the year the child turns 18.
How it’s invested
Until 18, only low-cost index funds that track U.S. stocks are allowed, and nothing can be taken out. That’s compounding with no temptation to touch it.
At 18
It becomes the child’s traditional IRA. What your family put in comes out tax-free (it was already taxed). The growth, and anything from an employer, the government or a charity, is taxed as income when withdrawn, with a 10% penalty before 59½ unless an exception applies, like a first home or college.
How it compares
If your child has earned income, a Roth IRA for kids is better: the growth is never taxed. A 529 is better for college. A Trump Account needs no earned income and catches the free $1,000, so for many families it’s a great first account. The rules are new, so check IRS guidance before you contribute.
Compare with a Roth IRA for Kids
Important — please read
This calculator is an educational tool. It shows a simple, fixed-rate projection: it assumes your money grows at the same rate every year with no interruptions, and it ignores taxes, fees, inflation, market volatility, sequence-of-returns risk, and changes to your contributions or circumstances. Real investment returns vary widely year to year and can be negative. Past performance does not predict future results.
The numbers shown are hypothetical illustrations, not a forecast, a promise, or a recommendation, and nothing here is investment, tax, legal, or financial advice or an offer or solicitation to buy or sell any security. Paycheck Paradox is not a registered investment adviser, broker-dealer, or tax advisor.
Before making any financial decision, talk to a qualified professional — a licensed financial advisor, CPA, or attorney — who can account for your full situation. You are solely responsible for your own decisions.
Provided “as is”, with no warranty of accuracy or fitness for any purpose. To the fullest extent permitted by law, Paycheck Paradox accepts no liability for any loss arising from use of, or reliance on, this tool.