Can I add more than $5,000 a year to a Trump Account?

Family contributions are capped at $5,000 per year combined per child (the figure is adjusted for inflation in future years). That total covers everyone: parents, grandparents, and anyone else giving. Separately, an employer can add up to $2,500 per year on top of the family cap if they choose to. If your inputs annualize above $5,000, the calculator shows a note so you can adjust.

What if my child was born before 2025?

Kids born before 2025 do not receive the $1,000 federal seed. The seed is for U.S. babies born January 1, 2025 through December 31, 2028 who are citizens with a Social Security number. A child born earlier can still have an account opened and receive contributions; they just start at $0 instead of $1,000. Set the seed toggle to no to model this.

When can my kid touch the money?

You control the account until your child turns 18. At 18 they take it over. After that, the account follows retirement-style rules: taking out growth before age 59.5 means income tax on that growth plus a 10% penalty. At or after 59.5, withdrawals of growth owe income tax but no penalty. That is why the calculator also shows what the balance could become if it is left untouched to age 59.5.

Is the $1,000 really free?

Yes, for eligible babies. The federal government seeds $1,000 into a Trump Account for U.S. children born January 1, 2025 through December 31, 2028 who are citizens with a Social Security number. You do not have to pay it back. The program launches July 4, 2026. The seed is the starting balance; any growth and any family contributions build on top of it.

Where is the money invested?

Trump Account money is invested in low-cost, broad U.S. stock index funds that track the whole market or the S&P 500. That means the balance rises and falls with the stock market rather than earning a fixed savings rate. Over long periods the U.S. stock market has averaged roughly 7% per year after inflation, but any single year can be up sharply or down. This calculator uses that long-term average to illustrate growth, not to promise it.

Trump Account Calculator

Enter your child's age, the $1,000 seed, and how much you plan to add. See the projected balance at 18 and how the money could grow if left to compound for decades.

In short

How much could a Trump Account be worth by age 18?

A Trump Account starts with a $1,000 federal seed for eligible U.S. babies born between 2025 and 2028, then grows with stock market returns and any family contributions (up to $5,000 per year combined). Using a 7% long-term average return, the $1,000 seed alone grows to about $3,400 over 18 years. Add $100 a month and the balance reaches roughly $44,000 by age 18. Max out the $5,000 yearly cap and it can reach about $173,000.

Those numbers are illustrations, not promises. The money sits in low-cost stock index funds, so the real balance rises and falls with the market. The bigger lesson is time: because the account follows retirement-style rules, money left untouched can keep compounding for decades. The same $44,000 at age 18, left alone at 7%, could grow to well over $700,000 by age 59.5 without a single extra dollar added.

See the growth in real life

Penny Time helps kids set savings goals and watch their balance climb.

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 from family (about $416 a month), adjusted for inflation in future years. An employer can add up to $2,500 a year separately if they offer it.
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.

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.

Frequently Asked Questions

: At a 7% average annual return (a common long-term, inflation-adjusted stock market estimate, not a guarantee), $1,000 left alone grows to about $3,400 over 18 years. Add $100 per month and the balance reaches roughly $44,000 by age 18. Contribute the full $5,000 per year and it can reach about $173,000. Returns are not guaranteed and will vary year to year. Use the calculator above to plug in your own numbers.
: Family contributions are capped at $5,000 per year combined per child (the figure is adjusted for inflation in future years). That total covers everyone: parents, grandparents, and anyone else giving. Separately, an employer can add up to $2,500 per year on top of the family cap if they choose to. If your inputs annualize above $5,000, the calculator shows a note so you can adjust.
: Kids born before 2025 do not receive the $1,000 federal seed. The seed is for U.S. babies born January 1, 2025 through December 31, 2028 who are citizens with a Social Security number. A child born earlier can still have an account opened and receive contributions; they just start at $0 instead of $1,000. Set the seed toggle to no to model this.
: You control the account until your child turns 18. At 18 they take it over. After that, the account follows retirement-style rules: taking out growth before age 59.5 means income tax on that growth plus a 10% penalty. At or after 59.5, withdrawals of growth owe income tax but no penalty. That is why the calculator also shows what the balance could become if it is left untouched to age 59.5.
: Yes, for eligible babies. The federal government seeds $1,000 into a Trump Account for U.S. children born January 1, 2025 through December 31, 2028 who are citizens with a Social Security number. You do not have to pay it back. The program launches July 4, 2026. The seed is the starting balance; any growth and any family contributions build on top of it.
: Trump Account money is invested in low-cost, broad U.S. stock index funds that track the whole market or the S&P 500. That means the balance rises and falls with the stock market rather than earning a fixed savings rate. Over long periods the U.S. stock market has averaged roughly 7% per year after inflation, but any single year can be up sharply or down. This calculator uses that long-term average to illustrate growth, not to promise it.

Build the saving habit while they are young

A Trump Account grows on its own, but the habit of setting money aside has to be taught. Penny Time lets kids manage their own allowance, set savings goals, and watch their balance grow week by week. Free for the whole family.

No credit card. No ads. No strings.

Spot a problem or have an idea? Email feedback@pennytime.app.