Trump Accounts projections vary, planners urge caution

July 13, 2026

1–2 minutes

Summary

Advisers said Trump Accounts can grow significantly, but results depend on returns, taxes, and whether the child leaves the money invested.

Why this matters

The story outlines how Trump Accounts compare with 401(k)s, 529 plans, and Roth IRAs, and highlights the assumptions behind government projections. It may help families weigh expected returns, tax treatment, and the risk of giving an 18-year-old full control of the funds.

Financial planners said projections for Trump Accounts can be substantial, but depend heavily on return assumptions, taxes, and whether the child leaves the money untouched for decades.

Trump Accounts, created under President Donald Trump’s tax law and launched July 4, provide eligible babies born between 2025 and 2028 with a one-time $1,000 U.S. Treasury deposit. Families, friends, and others can collectively contribute up to $5,000 a year in after-tax dollars, with the limit indexed for inflation after 2027.

The government app projects that a $250 annual contribution could grow to $19,000 by age 18 and $878,000 by age 55. At the $5,000 annual maximum, it projects $271,000 by age 18 and $13 million by age 55. Those estimates assume the S&P 500’s historical annual return of more than 10% over 55 years. Morningstar data provided to CNBC showed U.S. stock market returns could average 6.3% over the next decade.

Pam Krueger, founder of Wealthramp, said a family contributing the maximum from birth through age 18, plus the $1,000 seed deposit, would put in about $91,000. Assuming a 7% annual return, “that account could grow to roughly $185,000 by age 18,” and, if left untouched, “it could grow to more than $1 million by age 45.”

Mitch Hamer of Intersecting Wealth used the same 7% assumption and projected $1 million at age 45 and $3 million at age 60. At 8%, he projected $1.4 million at 45 and $4.5 million at 60.

Advisers said compounding drives most of the long-term growth. “The real engine isn’t the deposits—it’s time,” Krueger said.

They also said families should understand the tradeoffs. Unlike a Roth individual retirement account, withdrawals are taxed as ordinary income, and the account converts to a traditional individual retirement account at 18. Withdrawals before age 59½ can trigger a 10% penalty unless an exception applies, including education or a first-home purchase.

Planners said Trump Accounts supplement, rather than replace, other savings tools. They advised families to capture any employer 401(k) match first. They generally placed 529 plans ahead of Trump Accounts for families focused on college savings, while noting Trump Accounts can be more flexible for children without earned income. Some also suggested converting the account to a Roth IRA in early adulthood, when the account holder may face a lower tax rate.

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