Trump Account.
In plain English
A Trump Account is a traditional IRA opened for a child under a 2025 law. The money goes into a low-cost index fund of mostly U.S. stocks and grows without being taxed each year. Children who are U.S. citizens born from 2025 through 2028 get a one-time $1,000 federal seed, and the account is generally locked until the child turns 18.
01Why it matters
The $1,000 is free money, but the account is a traditional IRA, so withdrawals are taxed as ordinary income and the free portions are fully taxable. The headline growth projections are future dollars, before tax, and worth much less once you adjust for inflation.
02The math, step by step
The official site shows the $1,000 seed growing to about $6,000 by age 18. That is a future-dollar, pre-tax number. Adjusted for about 3% inflation it is worth roughly $3,500 in today's money, and it is still taxed as income when it is withdrawn.
03What this is NOT
A Trump Account is a traditional IRA, so its withdrawals are taxed, unlike a Roth. It is not a 529 either, which is built for education and can be withdrawn tax-free for qualified school costs.
04Receipts
Every figure on this page is sourced to a primary document. Tap to open the original.