Trump Account Calculator: Should You Open One for Your Baby?

A Trump Account (formally a MAGA Account in some media coverage) is a tax-deferred savings account created by federal legislation for U.S. children born between January 1, 2025 and December 31, 2028. The Treasury seeds each qualifying account with a one-time $1,000 deposit when enrollment opens in mid-2026. Parents, grandparents, and other family members can contribute up to $5,000 per year per child in aggregate. Investments grow tax-deferred, similar to a traditional IRA. Withdrawals taken at or after age 18 are taxed as ordinary income; withdrawals before age 18 incur a 10% penalty on top of ordinary income tax. Funds can be used for qualified expenses including higher education, a first-home down payment, and small-business or trade-school costs without the early-withdrawal penalty.

Eligibility is limited to U.S. citizens born between January 1, 2025 and December 31, 2028, who are claimed as dependents on a U.S. tax return and who have a valid Social Security number. The IRS has confirmed roughly four million children are already pre-enrolled based on 2025 birth records and Form 4547 filings. Babies born during the eligibility window will receive the $1,000 federal seed deposit automatically at the time their family registers an account at trumpaccounts.gov, expected to open in May 2026. Children born outside the four-year window are not eligible, but families with multiple eligible children may open one account per child.

Yes — there is no rule preventing simultaneous contributions to a Trump Account, a 529 plan, and a Custodial Roth IRA for the same child. In fact, the optimal strategy for most families is to layer all three: capture the free $1,000 federal seed in the Trump Account first, then prioritize whichever account offers the best tax treatment for your goal. If your state offers a 529 income-tax deduction, the 529 typically wins for college-bound savings. If your child has earned income (modeling, family business W-2, or similar), a Custodial Roth IRA gives unmatched tax-free retirement growth. The accounts have independent contribution limits, so contributing the maximum to one does not reduce the cap on another.

Trump Accounts are not college-restricted. Unlike a 529, qualified withdrawals include first-home down payments (up to a federal limit), small-business start-up costs, and trade-school or apprenticeship expenses. After age 28, funds can be rolled into a Roth IRA subject to the standard Roth annual contribution limit, providing a path to tax-free retirement growth. After age 59½, all withdrawals are taxed as ordinary income with no penalty. Non-qualified withdrawals before age 59½ are taxed as ordinary income plus a 10% early-withdrawal penalty, similar to a traditional IRA.

The $1,000 seed deposit is funded directly by the U.S. Treasury for every eligible child born during the 2025–2028 window. The seed is not means-tested, so household income does not affect eligibility. The deposit will appear in the account within roughly 60 days of registration at trumpaccounts.gov. If a family does not register an account, the seed is held in a default Treasury-managed account and can be claimed at any time before the child turns 18. Once deposited, the $1,000 is invested in the same default index fund as the rest of the account and grows tax-deferred until withdrawal.

The earliest your child can access Trump Account funds without a 10% penalty is age 18, and only for qualified expenses (higher education, first-home down payment, vocational training, or small-business costs). Non-qualified withdrawals between age 18 and 59½ are subject to ordinary income tax plus a 10% early-withdrawal penalty on the gains. After age 59½, all withdrawals are penalty-free and taxed as ordinary income. Required minimum distributions begin at age 75 under current rules. Many families plan to leave the account untouched until age 28 (when the Roth conversion option opens) or even age 59½ to maximize the tax-deferred compounding window.