Trump Account Calculator

Origin. Trump Accounts were created by the OBBB “Working Families Tax Cuts” provision (P.L. 119-21). Accounts began accepting contributions on July 4, 2026.

Federal seed. A one-time $1,000 federal deposit is made for a U.S.-citizen child with an SSN, born Jan 1, 2025 – Dec 31, 2028 (the pilot cohort), once the parent (or other adult) who expects to claim the child as a qualifying child files the Form 4547 election (IRC §6434). As of Oct 1, 2026, Treasury says the seed is paid only once the child’s automatically enrolled account is claimed in the official Trump Accounts app. Children outside those conditions can still have a Trump Account but receive no seed.

Automatic enrollment. As of Oct 1, 2026, Treasury says every eligible child under 18 with a valid Social Security number has a Trump Account. A parent or guardian must claim it in the official Trump Accounts app (identity and relationship check) before it can be managed or receive family, friend or employer contributions.

Contributions. Up to $5,000/year total (indexed after 2027). Employers may contribute up to $2,500/year, but that employer share COUNTS toward the $5,000 cap. Contributions are not tax-deductible.

Investment. Funds must be invested in a low-cost fund tracking the S&P 500 or a broad US-equity index.

Withdrawals & tax. Funds are locked until Jan 1 of the year the child turns 18. After that, the account is treated as a traditional IRA — 10% early-withdrawal penalty before 59½ with standard exceptions. On withdrawal, only your out-of-pocket family contributions come out as basis (tax-free); the $1,000 seed, all employer contributions, and 100% of the earnings are taxed as ordinary income.

Gift tax. Contributions within the annual limit generally are not subject to gift-tax reporting (conditions apply: Rev. Proc. 2026-25 requires, among other things, that your total gifts to the child stay within the $19,000 annual exclusion and that you file no Form 709 for the year; see the guide).