How Much Could A Trump Account Grow Over Time
Estimated Balance at Age 18 Under Different Contribution & Return Scenarios
Note: The chart above depicts the balances at age 18 based on different returns assumptions and different initial contributions refers to no additional contribution beyond the initial government seed money, contribution limit midpoint corresponds to the initial maximum employer contribution ($2,500) adjusted for inflation after 2027 made annually, and contribution limit maximum corresponds to the initial maximum overall contribution ($5,000) adjusted for inflation after 2027 made annually (assuming 2% annual inflation). The low, medium, and high return scenarios apply the minimum/average/maximum returns estimates of the total return S&P 500 in rolling 18-year-holding periods from 1975 through the present. These returns are applied to the account on an annualized basis such that the initial seed money from the government will receive the full 18-year return, an additional deposit made one year later will only receive 17 years' return, and so on. Diagonal lines represent a y-axis break.
Estimated Balance at Age 28 Under Different Contribution & Return Scenarios
Note: The chart above depicts the balances at age 28 based on different returns assumptions and different initial contributions. No contribution refers to additional contribution beyond the initial government seed money, contribution limit midpoint corresponds to the initial maximum employer contribution ($2,500) adjusted for inflation for 2028-2044 made annually, and contribution limit maximum corresponds to the initial maximum overall contribution ($5,000) adjusted for inflation for 2028-2044 made annually (assuming 2% annual inflation). We assume contributions under above limits until age 18 (2026-2044) and contributions under IRA limit adjusted for inflation after age 18 (years 2045-2054). The low, medium, and high return scenarios apply the minimum/average/maximum returns estimates of the total return S&P 500 in rolling 28-year-holding periods from 1975 through the present. These returns are applied to the account on an annualized basis such that the initial seed money from the government will receive the full 28-year return, an additional deposit made one year later will only receive 27 years' return, and so on. Diagonal lines represent a y-axis break.