Child Savings Simulator: Trump Accounts vs 529
Trump Accounts (federal child savings accounts created under the 2025 tax law) come with a $1,000 government deposit for children born 2025–2028. Project the balance at age 18 and compare it with putting the same money in a 529 plan. This site is not affiliated with the official government portal.
Based on 2026 tax year rules · Last updated Jul 28, 2026
Annual limit is $5,000 including employer contributions. The $1,000 federal deposit doesn't count toward it.
Employers can add up to $2,500 a year without it counting as your income.
An assumption, not a prediction. 7% is a common long-run stock market planning figure.
PROJECTED BALANCE AT AGE 18
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Enter a monthly contribution to see the projection
Not investment advice. The return is an assumption. Disclaimer
Federal child account vs 529 plan
| Federal child account | 529 plan | |
|---|---|---|
| One-time $1,000 federal deposit | Yes — children born 2025–2028 | No |
| Annual contribution limit | $5,000 (employer included) | No federal annual limit; state lifetime caps apply |
| Employer contributions | Up to $2,500/yr excluded from your income | Uncommon; treated as taxable compensation |
| Investment options | U.S. stock index funds (e.g., S&P 500) only | Menu of portfolios, incl. age-based and bond options |
| Tax on growth | Tax-deferred; taxed at withdrawal (IRS rules still being finalized) | Tax-free if used for qualified education expenses |
| Access before 18 | Generally locked until the year the child turns 18 | Withdraw anytime (non-qualified use incurs tax + 10% penalty on gains) |
| Spending restrictions | None after access begins, but gains are taxable | Education expenses for tax-free treatment |
Not investment advice. The growth rate is an assumption, not a prediction.
Based on IRS guidance. Tax year 2026 data, last updated Jul 28, 2026.
Primary sources: IRS: One Big Beautiful Bill Provisions · IRS: $1,000 Pilot Contribution
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