How to Use This Trump Account Calculator
Step 1: Enter Your Child's Birth Year
Select the year your child was born (or will be born). This determines whether they qualify for the $1,000 government seed deposit (available for children born 2025-2028) and how many years of contributions are possible before the account converts to an IRA at age 18.
Step 2: Set Your Contribution Amount
Choose how much you plan to contribute annually, up to $5,000. If your employer also contributes, enter that amount separately — the combined total cannot exceed $5,000. The calculator automatically enforces this cap. Contributing the maximum $5,000 per year produces the best results due to compound growth.
Step 3: Choose Your Expected Return
The default 8% reflects the historical average annual return of the S&P 500 (roughly 10% nominal minus 2% inflation adjustment). During the growth period, the calculator deducts the 0.10% maximum expense ratio mandated for Trump Account index funds. After conversion to IRA, a 0.50% fee is deducted to reflect typical IRA costs.
Step 4: Review Your Projections
The calculator shows your projected balance at age 18 (when the account converts to an IRA), at your chosen withdrawal age, and a breakdown of tax basis vs. taxable amounts. The growth chart visualizes the two phases: the contribution-active growth period and the post-18 IRA period.
Key Facts About Trump Accounts (Section 530A)
- Official name: Money Account for Growth and Advancement (MAGA Account), established under IRC Section 530A as part of the One Big Beautiful Bill.
- Government seed: $1,000 one-time deposit for children born 2025-2028. Does not count against the contribution limit. Does not create tax basis.
- Annual contribution limit: $5,000 combined from personal and employer sources. Employer max is $2,500.
- Investment restrictions: US equity index funds only during growth period, with maximum 0.10% expense ratio.
- Growth period: Birth through end of the year the child turns 17. Contributions are allowed starting July 4, 2026.
- After age 18: The account follows standard traditional IRA rules with expanded investment options, though it retains its Trump Account designation for tax basis purposes.
- No income limits: Unlike Roth IRAs, there are no income restrictions on who can contribute.
- No earned income requirement: Unlike Roth IRAs, contributions don't require the child to have earned income.
Important Caveats
- This calculator provides estimates based on assumed rates of return. Actual investment performance will vary and could be significantly higher or lower.
- The calculator assumes consistent annual contributions and returns, which is unlikely in practice. Markets fluctuate, and contributions may vary year to year.
- Tax rules and contribution limits may change through future legislation.
- The 10% early withdrawal penalty applies to distributions before age 59-1/2, except for qualified education expenses and first-time home purchases (up to $10,000).
- Required Minimum Distributions (RMDs) will apply to the traditional IRA, typically starting at age 73 under current law.