Frequently asked questions

Rules verified as of 2026-07-12 against the statute, IRS Notice 2025-68, and the CRS overview.

What is a 530A account?

A tax-advantaged custodial investment account for minors created by the One Big Beautiful Bill Act of 2025 (IRC §530A), marketed as a "Trump Account." Money is invested in a low-cost S&P 500 index fund and grows tax-deferred until withdrawal.

Who gets the $1,000 federal seed?

U.S.-citizen children born January 1, 2025 through December 31, 2028 who have a Social Security number receive a one-time $1,000 federal contribution. Children born outside that window can still have an account — they just don’t receive the seed.

How much can be contributed each year?

Up to $5,000 per child per year from all sources combined, indexed to inflation after 2027. Employers may contribute up to $2,500 per year, counted within the $5,000 cap. Contributions are allowed starting July 4, 2026.

How is a 530A taxed?

Contributions are made after tax and form your basis. Growth is tax-deferred, and earnings are taxed as income when withdrawn. Converting to a Roth IRA after 18 taxes the non-basis amount at conversion. This calculator labels every tax figure as an estimate.

When can the money be used?

No withdrawals before age 18. At 18 the child owns the account and it behaves like a Traditional IRA — penalty-free withdrawals at 59½, with IRA-style exceptions before that.

Can the account roll into a 529 college plan?

Not that we can verify. The statute specifies Traditional-IRA treatment at 18; we could not find a 529 rollover provision, so this calculator marks that path "not currently permitted" until primary sources confirm otherwise.

What does this calculator assume?

By default: a 7% average annual return after inflation (2.5% inflation assumption), the default fund’s 0.03% expense ratio, monthly compounding, and current statutory rules. Every assumption is adjustable in the Advanced Model, shown with your results, and clearly labeled an estimate.

Is my data collected?

No. All calculation runs in your browser; your inputs never reach a server. There is no login, no email capture, and no advertising. Shared links contain only the scenario numbers you chose to share.