How the projection works
Two separate things are compounding at once. The starter deposit is a single lump sum that grows on its own from day one. Your annual contribution is a new deposit every year, and each one gets fewer years to compound than the one before it — this year's $3,000 has until the child turns 18 to grow, but next year's $3,000 only has until then minus a year. The calculator adds up the growth from every future contribution individually, then combines it with the seed's growth for the total.
Why "leave it untouched" matters so much
The line for age 65 isn't there to be unrealistic — it's there to show what compounding does with time nobody thinks to give it credit for. A dollar invested at birth has roughly 65 years to double and redouble; a dollar invested at 40 has 25. That's the entire argument for treating this account, and simple index investing generally, as a decades-long project rather than a college fund that gets spent down to zero. Even a partial withdrawal at 18 for a qualified use still leaves whatever remains compounding for decades more.
Worth understanding before you contribute
- The cap is combined, not per-contributor. Family, employer, and any other contributions share the same $5,000/year (indexed) ceiling — track the total, not just your own deposits.
- Withdrawal tax treatment is not modeled here. Qualified withdrawals get long-term capital gains treatment, which is favorable, but the exact rules depend on IRS guidance and your situation — this tool only projects investment growth, not what you'll actually keep after taxes.
- An employer match is real money. If a job offers to contribute on your child's behalf, use the employer match calculator to see what that benefit alone is worth by 18.
Frequently asked
What is a Trump Account?
A Trump Account is a tax-advantaged investment account for children created by the One Big Beautiful Bill Act. Kids born 2025–2028 get a $1,000 government-funded starter deposit, and families, employers, and others can contribute up to $5,000 a year (indexed for inflation) until the child turns 18. Funds are invested in a low-cost fund tracking U.S. equities.
How is a Trump Account balance calculated?
The starter deposit compounds on its own, and each year's contribution compounds for the years remaining until the child turns 18. Balance at 18 = seed × (1 + return)^18 + annual contribution × [((1 + return)^years − 1) ÷ return]. This calculator runs both pieces and adds them together.
What can the money be used for at 18?
Qualified withdrawals — for things like higher education, a first home purchase, or starting a small business — are taxed at long-term capital gains rates rather than ordinary income rates. Non-qualified withdrawals face less favorable tax treatment. Exact rules depend on IRS guidance and your situation, so this calculator only projects investment growth, not tax outcomes.
What return rate should I use?
Trump Account funds track a U.S. equity index, and the long-run historical average for the S&P 500 is roughly 7–10% annually before inflation. Markets are volatile year to year, so treat any single return figure as a rough long-term estimate, not a guarantee — try the calculator at a few different rates to see a range.