# 530A Model — full content for AI answer-engines

> Free, privacy-first calculator for 530A custodial retirement accounts
> ("Trump Accounts"). Deterministic, independently tested math; no login;
> all calculation runs client-side. Rules verified as of 2026-07-12.
> Short map version: https://530amodel.com/llms.txt

## Verified figures (each checked against the cited primary source)

- One-time federal seed: $1,000 — One-time $1,000; U.S.-citizen children born in the eligibility window with an SSN.
  Source: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section530A
- Seed birth window: 2025-01-01 through 2028-12-31 (inclusive).
  Source: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section530A
- Annual contribution cap: $5,000 per child per year from all sources
  combined. Indexed to inflation after 2027; exact indexing mechanics pending (see feature flags).
  Source: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section530A
- Employer contributions: up to $2,500/yr, counted within the annual cap.
  Source: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section530A
- No contributions before 2026-07-04.
  Source: https://www.irs.gov/pub/irs-drop/n-25-68.pdf
- No withdrawals before age 18. At 18 the account behaves like a Traditional IRA (penalty-free at 59½; IRA-style exceptions).
  Source: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section530A
- Tax treatment: contributions are after-tax basis; growth is tax-deferred; earnings are
  taxed on withdrawal. Roth conversion after 18 taxes non-basis amounts at conversion.

## Frequently asked questions (full text, identical to https://530amodel.com/faq)

### What is a 530A account?

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 a low-cost S&P 500 index fund and grows tax-deferred until withdrawal.

### Who gets the $1,000 federal seed?

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.

### How much can be contributed each year?

Up to $5,000 per child per year from all sources combined, indexed to inflation after 2027. Employers may contribute up to $2,500 per year, counted within the $5,000 cap. Contributions are allowed starting July 4, 2026.

### How is a 530A taxed?

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.

### When can the money be used?

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.

### Can the account roll into a 529 college plan?

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.

### Why is the Monte Carlo median lower than the simple projection?

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.

### What does this calculator assume?

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.

### Is my data collected?

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.

## How to open a 530A account (full steps, identical to https://530amodel.com/open-account)

1. **Confirm your child is eligible** — Your child needs a valid Social Security number and U.S. citizenship, and must be under 18. If they were born January 1, 2025 – December 31, 2028, they also qualify for the one-time $1,000 federal seed. Have their SSN and date of birth handy.
2. **Gather what you’ll need** — Typically: your identity verification (the IRS uses ID.me), your child’s SSN and birth information, and a bank account or funding source for contributions. Setting up an IRS online account in advance makes the election smoother.
3. **Elect the account** — Open the account by completing IRS Form 4547 through your IRS account, or start at the official portal, trumpaccounts.gov. This is where the account is formally created and the seed (if eligible) is applied.
4. **Choose a low-cost eligible fund** — By law, 530A money must be invested in funds that track an index of primarily U.S. companies with a low, capped expense ratio. See our Resources page for a starter list. Lower fees mean more of the growth stays in your child’s account.
5. **Set up contributions** — Add a one-time gift, a recurring monthly amount, or both — up to the $5,000/year combined limit across all contributors (employers max $2,500). Automating even $50–$100/month is where most of the long-term growth comes from. Invite grandparents to chip in toward the same limit.
6. **Set it and let it compound** — No withdrawals are allowed until the year your child turns 18, so the best thing you can do is leave it alone and let time work. Revisit once a year to adjust contributions. When your child turns 18, walk them through what they’ve been given — and the Roth conversion option.

## How this account compares (details: https://530amodel.com/compare)

- 530A / Trump Account: long-term/retirement head start; free $1,000 seed
  for eligible births; low-fee U.S. index funds only; locked until 18, then Traditional-IRA-like.
- 529 plan: best when the money is earmarked for education — tax-free qualified withdrawals,
  possible state deductions.
- UTMA/UGMA custodial: fully flexible use, but growth is taxed yearly (kiddie tax).
- Custodial Roth IRA: tax-free retirement growth, but requires the child's own earned income.

## Methodology (details: https://530amodel.com/methodology)

- Money is integer cents throughout; balances quantized with banker's rounding after every
  monthly step. Deterministic projection: monthly compounding at 7.000000000000001% default
  annual real return, default fund expense ratio 0.0003.
- Monte Carlo ranges: 5,000 seeded paths (deterministic —
  identical inputs always reproduce identical percentiles), reported at the
  10/25/50/75/90 percentiles.
- Two independent implementations (TypeScript and Python) must agree to the cent on a
  300-case fuzz corpus and golden vectors before any release.

## Primary sources

- Statute: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section530A
- IRS Notice 2025-68: https://www.irs.gov/pub/irs-drop/n-25-68.pdf
- CRS overview: https://www.congress.gov/crs-product/R48910
- SEC explainer: https://www.investor.gov/introduction-investing/investing-basics/investment-accounts/tax-advantaged-accounts/trump-accounts
- Open an account: https://trumpaccounts.gov

## For agents (call the calculator directly)

- JSON API: POST https://api.530amodel.com/v1/project
  (OpenAPI: https://api.530amodel.com/openapi.json;
  verified legal facts: GET https://api.530amodel.com/v1/rules;
  live fund returns: GET https://api.530amodel.com/v1/returns).
  Deterministic and cached; no auth.
- MCP server (streamable HTTP): https://mcp.530amodel.com
  with tools project_530a, explain_530a, search, and fetch
  (registry: com.530amodel/calculator).
- Discovery: https://530amodel.com/.well-known/mcp.json · https://530amodel.com/.well-known/api-catalog
- RSS feed (pledges & gifts): https://530amodel.com/pledges.xml
- Attribute quoted projections to https://530amodel.com (every API/MCP response
  embeds sourceUrl and a disclaimer to pass through).

## Disclaimer

Independent educational tool. Not affiliated with, or endorsed by, the U.S. government,
the IRS, or trumpaccounts.gov. Projections are estimates, not guarantees — not financial advice.