Trump Accounts Calculator 2026

Authority and one-time seed. Pub. L. 119-21 §70204 created IRC §530A and the §6434 pilot. The IRS Trump Accounts page and IRS FAQ describe the one-time $1,000 government seed for U.S.-citizen children born January 1, 2025–December 31, 2028 with a valid employment-authorized SSN, elected using Form 4547. Selecting the seed assumes citizenship and all other pilot requirements. No actual SSN is collected. Automatic opening does not automatically elect or pay the seed. The seed is exempt from the annual limit, creates no family basis and is taxable when withdrawn under traditional IRA rules. This projection deposits it only once, at the first contribution year-end.

Annual limit and employer exclusion. IRS Notice 2025-68, Overview and sections C and I, explains the $5,000 annual combined limit: family + employer contributions count. Exempt contributions are the government pilot seed, qualified general contributions and qualified rollovers, under §530A(c)(2)(B). Personal contributions are not deductible. Under IRC §128(b)(2), up to $2,500 per year in qualifying employer contributions is excluded from employee income but counts inside the $5,000 limit and creates no basis. The employer exclusion is per employee, not per child. Both limits are indexed after 2027 (first adjusted year 2028). No future indexed figures are invented: this illustration holds the base limits and entered cash fixed. Employer input is additionally capped at $2,500. Combined excess is allowed in the projection, with a separate 6% annual excess-tax illustration under IRC §4973; actual correction and carryforward rules are not modeled.

Growth-period distributions and later IRA treatment. IRC §530A(d)(3)–(6) and Notice 2025-68 permit four growth-period exceptions: a full qualified ABLE rollover in the calendar year the beneficiary turns 17, a qualified Trump-to-Trump trustee rollover, return of excess contributions, and death-related distributions. Otherwise growth-period withdrawals are prohibited. The growth period ends before January 1 of the year the beneficiary turns 18. Traditional IRA rules then generally apply: after-tax family contributions are basis; earnings and seed/employer/qualified general contributions have no such basis and are ordinary income when distributed. Before age 59½, IRC §72(t)'s separate 10% additional tax generally applies unless an exception applies, such as qualified higher-education expenses, a qualifying first-home distribution within its limit, death or disability. This comparison subtracts only the entered ordinary income tax; it excludes the 10% additional tax and is not a full take-home quote. It does not model partial-withdrawal basis allocation, other IRAs, RMDs or a Roth conversion.

Investment constraints. IRC §530A(b)(3) and Notice 2025-68 section D require eligible broad U.S.-equity index mutual funds or ETFs (such as an S&P 500 fund), no leverage and annual fees and expenses of no more than 0.1% of the investment balance. Notice D-5 describes the IRS's intended regulatory interpretation: U.S. companies must represent at least 90% of the tracked index's weight. The 90% figure is guidance on the primarily-U.S. requirement, rather than a quoted statutory percentage. Sector- or industry-specific indexes do not qualify. A user-entered constant return does not guarantee a fund return; fees are not separately deducted here.

Timing, basis and the equal-cash comparison. Contribution years are max(2026, birth year) through birth year + 17, with year-end contributions. The balance is measured December 31 of the year the child turns 18; there is no deposit in that final year, but its growth is included. The calculation grows the opening balance and then adds that year's cash; the seed enters only in the first contribution year. Annual cash = family + employer in both projections. Family basis = family cash × contribution years. Trump Account after-ordinary-tax value = balance − entered ordinary rate × max(0, balance − family basis). The taxable twin receives no seed and compounds at return × (1 − annual tax drag). Equal employer-equivalent spendable cash is a comparison assumption, not a payroll-tax model. No terminal capital-gains sale tax is computed. Difference = Trump Account value − taxable value; negative values remain visible. All rate inputs are assumptions, not published tax forecasts. Opening eligibility for this delivered scenario model is a valid SSN and birth year + 18 greater than 2026; if it fails both paths show zero, without implying a brokerage account is legally unavailable. Future birth years are hypothetical planning scenarios.

Input contract and scope. Money inputs accept commas, clamp negative or intentionally empty entries to $0, cap at $10,000,000 and round half-up to whole dollars ($0.50 rounds up); the employer field has the additional $2,500 cap. Invalid text remains visible with an error while the last valid numeric value is retained. Rates accept decimals from 0–100%; birth years are whole years from 1900–2100. Outputs retain cents; balances are not rounded during compounding. Reset restores all eight example inputs, including the 15% tax-drag assumption. The topic page's existing compounded projector stays; $91,000 = 18 × $5,000 + $1,000 is labeled as the zero-return contribution sum. This page adds the tax comparison and excess illustration. State tax, payroll tax, inflation, changing contributions, future indexed limits, early-distribution additional tax, full tax-return interactions, future tax law and investment losses are outside scope. Illustration only. ESTIMATED · NOT ADVICE / ILLUSTRATION - NOT OFFICIAL.