Questions about 530A accounts

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 low-cost index funds tracking primarily U.S. companies and grows tax-deferred until withdrawal.

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.

Up to $5,000 per child per year from all sources combined, expected to be indexed to inflation after 2027 (exact mechanics pending IRS guidance). Employers may contribute up to $2,500 per year, counted within the $5,000 cap. Contributions have been allowed since July 4, 2026.

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 Growth is tax-deferred, and earnings are taxed as income when withdrawn.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.

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.

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.

Because volatility drags on compounding. A steady 7% every year grows more than a bumpy sequence that averages 7% — a real effect called variance drain. The single-line projection shows the smooth case; the Monte Carlo median reflects the messier reality of real markets. Both are shown so you can see the gap.

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.

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.