When your child turns 18, their Trump Account converts to a traditional IRA. The money doesn't disappear, it doesn't suddenly become freely spendable, and there's no need to do anything dramatic. It just transitions into a different type of account and continues to grow.
The Account Becomes a Traditional IRA
On January 1 of the year your child turns 18, the Invest America Account converts to a standard traditional IRA. Your child takes ownership and control of the account. From that point forward, it follows all the standard rules that apply to traditional IRAs.
This means the money keeps growing tax-deferred. Your child can continue contributing to it as they earn income. And if they need to make a withdrawal before age 59½, the standard 10% early withdrawal penalty applies.
Can They Withdraw the Money at 18?
Technically yes, but with consequences. Withdrawing from a traditional IRA before age 59½ comes with a 10% penalty on top of ordinary income taxes on whatever was withdrawn. So pulling the money out at 18 would be expensive.
The much smarter move is to let it keep growing. A child who starts a Trump Account at birth and converts to an IRA at 18 is entering adulthood with a meaningful head start on retirement savings. Every year they leave it alone, the power of compounding does its thing.
See what the account could realistically be worth by age 18 and beyond here.
Can They Keep Contributing After 18?
Yes. Once the account converts to a traditional IRA, your child can continue making contributions up to standard IRA limits. Those contributions need to come from earned income at that point, as with any IRA.
The Trump Account itself stops accepting the special $5,000/year contributions from family and employers at that point. The program is designed for children. Once your child ages out, the account functions like any other IRA.
What If They Want to Roll It Into a Different Account?
After 18, the account is theirs. They can roll it into another IRA, keep it where it is, or work with a financial institution to manage it differently. Grifin is building toward being a home for Trump Account rollover for families who want to continue investing with us. That option will be available once financial institutions are permitted to hold these accounts. Learn more about how the program works here.
How Should I Talk to My Kid About This?
The sooner your child understands what this account is, the better. A teenager who knows they have a growing investment account in their name, and understands the penalty for pulling it out early, is far more likely to leave it alone and let it compound.
Think of the Trump Account as a head start you're giving them, not a college fund or a rainy day account. It's a foundation for their financial future that most adults their age won't have.
Find out if your child qualifies at investamericaquiz.com.
Not sure where to start? We've rounded up every question 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.
