Here's How Much A 'Trump Account' Could Be Worth When You Can Withdraw The Money

The Trump accounts created with the One Big Beautiful Bill Act (OBBBA) take family-friendly policy a step forward, giving the next generation of children a head start. Between the federal government's $1,000 seed deposit and donations from family, friends, or employers, the starting numbers aren't bad. The most natural question to ask next is how much a Trump account could be worth when the holder is able to withdraw. The White House Council of Economic Advisers, in a memo, says the contributions in a Trump account could grow to $303,800 by the time the child turns 18 and $1.09 million by age 28. 

This growth is possible because Trump accounts work like tax-advantaged savings and investment accounts that hold the balance and contributions until the child reaches adulthood. The growth comes from the deposited money, which is invested in certain mutual funds or ETFs that track major U.S. stock indexes, like the S&P 500. The investment choice is also important because broad indexes are some of the best ways to invest and earn decent returns — for instance, the S&P 500 has averaged 10% since 1957. Also, said growth is unhindered because the funds are locked, and the account holder can't withdraw them until at least the first day of the year they turn 18. After that, the account resembles more of a traditional IRA that you'd open yourself and has the same rules. 

It's important to note that the $300,000 outcome assumes two conditions are met. First, that the child was born between 2025 and 2028 and received the $1,000 government seed deposit; second, that their parents and guardians max out the annual $5,000 in contributions every year; and third, that the annual rate of return remains at around 10% for the duration of the term. 

Over $300,000 in returns is really just an optimistic ballpark, and not every Trump account holder will end up with that amount. The Council of Economic Advisers looked at the big picture, including families that cannot max out their contributions and others who can't afford to contribute at all. The council estimates cover three categories of returns: minimum, midpoint, and maximum. The rate on returns across the three categories is adjusted slightly (2%) to account for the hidden factor — inflation.

Assuming low returns at a rate of 5.4% for the duration of the investment term, a Trump account could grow to $2,577 with no contributions, $94,993 with medium contributions, and $187,408 with maximum contributions. On the other hand, with high returns at an annual rate of 18.5%, the account could grow to $21,229 with no contributions, $375,812 with medium contributions, and $730,395 with maximum contributions. With medium returns at a rate of 10.3%, the accounts could accumulate $5,839 with no contributions, $154,798 with medium contributions, and $303,757 with maximum contributions.

Using this carefully crafted scale, the balance in a Trump account with just the $1,000 seed and only half the maximum contributions ($2,500) each year could range from $391,418 to $972,239 if withdrawn after 28 years. All summed up, the potential for these Trump accounts to benefit children is quite clear. The scale is pretty wide, but the largest factor influencing the final outcome is the amount of contributions made by family friends and guardians, as well as the average rate of returns on the index invested in.