Trump Accounts: The Real Math Behind a Kid's IRA
24/7 Wall St. analyzes the Trump Accounts (530A) program—a government seed of $1,000 per child plus private philanthropy—that has opened millions of accounts and could theoretically reach about $13 million by age 55 with 18 years of $5,000 annual contributions and strong stock returns. Realistically, with smaller contributions (e.g., $50/month) and average market performance, a child might reach tens of thousands by 18 and $500k–$600k by 55 if left untouched. The article notes the tax treatment (earnings taxed as ordinary income, withdrawals taxed, with 529 plans or custodial Roth IRAs often being better), the potential risk of a child gaining full control at 18, and highlights philanthropic commitments (Dell, Micron, Dalio) that boost the program.
