When your child turns 18, their Trump Account converts to a traditional IRA.
That's the moment the government's role ends and your child takes full ownership of the account.
What Is a Traditional IRA?
A traditional IRA is a retirement investment account. Your child can continue contributing up to IRA contribution limits, invest in a wide range of assets, and leave the money to keep compounding. Withdrawals are taxed as ordinary income, and early withdrawals before 59½ come with a 10% penalty (with some exceptions).
If your child leaves the money alone from age 18 to retirement, the compounding could be significant. A Trump Account started at birth with $5,000/year in contributions, projected at 6% annual returns, could be worth over $150,000 at 18. Left in a traditional IRA and growing at 6% for another 40 years, that could exceed $1.5 million.
Does My Child Have to Keep It in a Traditional IRA?
Once the account converts to a traditional IRA, your child can roll it over to any participating financial institution. They're not locked into the original government-managed account. They can choose a brokerage, an app, or a bank that offers IRAs.
Grifin plans to offer a rollover option for families who want to bring their Trump Account into the Grifin platform. You can learn more on the Invest America landing page.
Can They Withdraw the Money at 18?
Yes, but there are tax consequences. Withdrawing from a traditional IRA before age 59½ triggers income taxes on earnings plus a 10% early withdrawal penalty. The exceptions include first home purchase, disability, qualified education expenses, and a few others.
So technically your child can take the money out at 18. But doing so would cost them a meaningful chunk of it in taxes and penalties.
The smarter move for most 18-year-olds: leave it alone.
What If They Want to Use It for College?
Qualified education expenses are one of the exceptions to the 10% early withdrawal penalty. Your child would still owe income tax on the earnings, but they wouldn't face the additional 10% hit. This makes it usable for college if needed, though a 529 plan is specifically designed for education spending and may be more tax-efficient for that purpose.
Some families use a Trump Account for long-term wealth and a 529 for education costs. See how Trump Accounts compare to 529 plans.
Is 18 the Official Age?
The account converts on January 1 of the year your child turns 18, not on their actual birthday. So if your child's birthday is in June, the conversion happens on January 1 of that year, not in June.
How Much Could the Account Be Worth?
That depends on how much is contributed and what the market does. The government seeds eligible accounts with $1,000 (for children born 2025 through 2028), and families can contribute up to $5,000/year on top of that. See the projected growth numbers for different contribution scenarios.
To learn more about how the full program works, check out the Trump Accounts explainer.
Find out if your child qualifies at investamericaquiz.com.
Still have questions? Here's everything people are asking about Trump Accounts.
This post is for educational purposes only and is not tax, legal, or investment advice. Grifin is not affiliated with the U.S. government or the Invest America program.
