The 2025 One Big Beautiful Bill Act created "Trump Accounts" — tax-advantaged investment accounts that give every eligible U.S. newborn born in 2025–2028 a one-time $1,000 federal deposit. This calculator projects how that seed plus your yearly contributions can grow by adulthood, and how it compares to a 529.
How a Trump Account grows
The account starts with the $1,000 federal seed and any contributions you add, invested in low-cost funds tracking the S&P 500 or a similar U.S.-equity index. Private contributions are capped at $5,000 per year in aggregate across everyone who funds the account, and an employer may add up to $2,500 of that. The seed is separate and does not count toward the cap.
Growth is tax-deferred: gains are not taxed each year, so the balance compounds on the full amount. The projection uses a fixed annual return you choose — real markets are volatile, so treat the number as a long-run estimate, not a forecast.
The rules that shape the number
Money generally cannot be withdrawn before January 1 of the year the child turns 18. After 18 the account behaves like a traditional IRA — withdrawals are taxed as ordinary income, and taking money out before age 59½ can trigger a 10% penalty on the taxable portion unless an exception applies, such as qualified higher-education costs or a first-home purchase. Contributions themselves are only allowed through age 18, so if you project to a later age the balance simply keeps compounding without new deposits.
Because the individual contributions are made with after-tax dollars, they create basis and come back out tax-free; the government seed, employer contributions, and all earnings are taxable on withdrawal.
Trump Account or 529?
At the same return and contributions, a Trump Account and a 529 accumulate almost identically — both grow without annual tax drag. The two real accumulation differences are the Trump Account's $1,000 seed (an edge of a few thousand dollars by 18) and its $5,000 annual cap (a 529 has no low federal cap, so it wins if you would save more). The bigger distinction is on the way out: a 529 withdraws tax-free for education, while a Trump Account is more flexible but taxes earnings as ordinary income. Many families use both.
Trump Accounts are brand new, and the Treasury and IRS are still issuing rules. Contribution limits, tax treatment, and withdrawal mechanics may change — confirm the current rules before making decisions.