Trump Account Calculator

How this calculator works

The math is simple compound growth. The $1,000 seed grows at the rate you pick. Your monthly contributions are added each year and grow too. Years to grow equals 18 minus your child's current age, because the child takes over the account at 18.

• The seed: $1,000 free federal start for eligible U.S. babies born January 1, 2025 through December 31, 2028 (citizen with a Social Security number). Kids born before 2025 start at $0 but can still open an account and contribute.
• The cap: up to $5,000 per year combined per child (about $416 a month), adjusted for inflation in future years. If an employer offers a program, up to $2,500 of that $5,000 can come from them; it counts toward the cap, not on top of it. The $1,000 seed does not count against the $5,000.
• The rate: the money is invested in low-cost, broad U.S. stock index funds. Historically the market has averaged roughly 7% per year after inflation. Some years are up 30%, some down 20%. This tool uses a flat average to illustrate, not to predict.
• The age-18 rule: you manage the account until your child turns 18, then they take over. After that, taking out growth before age 59.5 owes income tax plus a 10% penalty; at or after 59.5, income tax with no penalty.

This calculator is for educational purposes only. It is not financial, investment, or tax advice. Growth figures are illustrative based on the rate you choose and are not guaranteed. Program details can change; confirm current rules before making decisions. For the full background, read our guide on what a Trump Account is.

How to open a Trump Account and claim the $1,000

Opening a Trump Account is not automatic. A parent or guardian has to make the election by filing IRS Form 4547 for the child. You can file it electronically with your 2025 federal tax return, and both contributions and the $1,000 claims opened on July 4, 2026.

1. Check who qualifies for the seed. The one-time $1,000 federal contribution is for U.S. citizen children born January 1, 2025 through December 31, 2028 who have a Social Security number and have not already had an election filed. Any child under 18 with a Social Security number can still open an account and receive contributions; they just start at $0 instead of $1,000.
2. File IRS Form 4547, the Trump Account Election. Most families file it with their 2025 federal tax return, including electronically through tax software. The form tells the IRS to open the account and, for eligible babies, to deposit the $1,000 seed.
3. Add contributions if you want to. Once the account is open, contributions are capped at $5,000 per year combined per child (about $416 a month). If an employer offers a program, up to $2,500 of that $5,000 can come from them; it counts toward the cap, not on top of it. The money is invested in low-cost U.S. stock index funds.
4. Let it grow until 18. You manage the account until your child turns 18, then they take it over. Use the calculator above to see what different contribution amounts could become by then.

The rollout is moving fast: as of 2026, about 4 million children have been signed up for Trump Accounts and roughly 1 million have claimed the $1,000 pilot contribution, according to the IRS. Program details can still change, so confirm the current rules at irs.gov/trumpaccounts before you file.

Explaining a Trump Account to your kids

The account is a great chance to teach the idea that money can make money. Here is how to talk about it at three different ages, in plain words.

Ages 3-6: money that grows

Keep it concrete. "You have a special money jar that the government helped fill with a thousand dollars. We do not spend it. We leave it alone, and over a long time it grows bigger all by itself, like a plant that keeps getting taller." A piggy bank you do not open is the mental picture that lands at this age.

Ages 7-12: money makes money

Now you can add the mechanic. "Your account is invested, which means it earns a little extra each year. Next year it earns on the bigger amount, so the extra gets bigger too. Leave it alone long enough and the earnings start to outgrow what we put in." Pull up the calculator and let them watch the growth slice get larger than the contribution slice. That gap is the lesson.

Ages 13-17: the long game

Teens can handle the real rules. "This is yours at 18. If you leave it invested instead of cashing it out, it keeps compounding. The same balance can multiply many times over by the time you are near retirement, because the growth has decades to build on itself. Taking it out early costs you taxes and a penalty, so the smart move is patience." Show them the value-at-59.5 line; it makes the case better than any lecture.