1. The child's account
2. Annual contributions
Family and employer money together cannot exceed $5,000/year (the 2026-2027 figure), and the employer portion alone cannot exceed $2,500/year — this projection applies both caps and this same dollar amount every year until the withdrawal age above.
3. Withdrawal
Fill in the account and contribution details, then click Calculate.
Projection
What this does not cover
- Not a full tax return. This estimates one account's federal tax treatment only — not your total tax liability, other deductions or credits, or state tax (most states have not yet ruled on their own treatment of a Trump Account).
- Citizenship and birth year are self-reported — confirmed by you, not verified here.
- The $5,000 annual cap is applied flat to every projected year. By statute it is indexed upward in $100 increments starting 2028, so this understates the room available in later years — never overstates it.
- Assumes a single, full withdrawal at the chosen age. A series of partial withdrawals uses the same pro-rata percentage on each one, applied to a shrinking balance.
Common questions
What is a Trump Account?
A federal, tax-advantaged savings account for a US citizen under 18, created by the One Big Beautiful Bill Act (26 U.S.C. 530A). A US citizen born 2025-2028 gets a one-time $1,000 federal pilot deposit; anyone can then contribute up to $5,000/year combined (2026-2027, indexed from 2028), invested in a fund tracking a broad US-company index. No distributions of any kind are allowed before the account owner turns 18.
Is the $1,000 seed deposit taxed the same as money I contribute myself?
No -- and this is the detail a 529-plan comparison gets backwards. Money YOU (or another individual) contribute is basis and comes out tax-free. The $1,000 federal seed deposit and any employer contribution create NO basis: every dollar of those, plus ALL investment growth on the whole account, is taxed as ordinary income when withdrawn.
Can I withdraw just my own contributions tax-free and leave the taxable part in the account?
No. Withdrawals follow the IRA pro-rata rule: every withdrawal is part tax-free and part taxable, in the same ratio as your basis is to the total account value. You cannot choose to take out your own contributions first.
How much can an employer contribute, and does it count against the $5,000 limit?
An employer can exclude up to $2,500/year per employee from that employee's federal taxable income (still generally subject to payroll tax), and that $2,500 counts INSIDE the shared $5,000 annual cap, not on top of it -- so a $2,500 employer contribution leaves only $2,500 of room for everyone else that year.
What happens if I withdraw before age 18, or before 59.5?
No distribution of any kind is permitted before the account owner turns 18. From 18 on, the account is taxed like a traditional IRA: a 10% penalty applies to the taxable portion of any withdrawal before age 59.5, unless the withdrawal is for a use the traditional-IRA penalty exceptions already recognize -- qualified higher education expenses, a first home purchase, certain disability, and similar.
Is this tax advice?
No. This calculator applies the published federal contribution caps, seed-deposit rule, and pro-rata withdrawal formula to the numbers you enter. It is not a full tax return, it does not verify your child's citizenship or birth year, and it is not a substitute for reviewing the IRS's own guidance or consulting a qualified tax professional.