What happens to a Trump Account when your child turns 18

By Aaron Houston · Last checked 2026-10-26 against IRS and Treasury sources

The growth period ends the year your child turns 17

Strict Trump Account rules apply during the growth period, which ends on Dec 31 of the calendar year the child turns 17. For example, for a child born Oct 1, 2025, the growth period ends Dec 31, 2042 (IRS: Instructions for Form 4547, IRS: Notice 2025-68). Under the temporary regulations, a person attains an age on their birthday (IRS: TD 10056, IRB 2026-44).

Applying that rule, a child born in 2009 turns 17 in 2026, so their growth period ends Dec 31, 2026. (This is our application of the official rule, not a separate IRS statement.)

Before the growth period ends

No withdrawals in general. A trustee may not make hardship distributions or close the account and pay out the money (IRS: Notice 2025-68, Q&A E-2).
A rollover to an ABLE account is allowed only during the calendar year the child turns 17, and not after the growth period (IRS: Notice 2025-68, Q&A E-3).
Contribution limits ($5,000 a year combined) apply only during the growth period (IRS: Instructions for Form 4547). See contribution limits.

After the growth period: IRA rules

Withdrawals follow the traditional IRA distribution rules. The part of a withdrawal that comes from basis (after-tax family contributions) is not taxed, while earnings and money that never created basis (the $1,000 pilot, employer and general contributions) are taxed as income (IRS: Notice 2025-68, Q&A G-1).
A 10% additional tax on early distributions may apply unless an exception applies (IRS: Instructions for Form 4547). See the IRS list of exceptions to the tax on early distributions.
The account does not automatically stop being a Trump Account when the growth period ends (IRS: Notice 2025-68, Q&A G-2). However, the account agreement may provide that, right after the growth period, everything moves automatically to a regular traditional IRA at the same trustee (IRS: Notice 2025-68, Q&A A-10).
If an automatically created account is never claimed during the growth period and is claimed later, the balance goes by trustee-to-trustee transfer to a traditional IRA for the child (IRS: TD 10056, IRB 2026-44).

Who controls the account

The responsible party (usually a parent or guardian) manages the account while the child is a minor (IRS: Instructions for Form 4547). Under the temporary regulations, the responsible party's authority applies while the beneficiary lacks legal capacity, and the beneficiary can claim an auto account once they have legal capacity, for example after reaching the age of majority under state law or becoming emancipated (IRS: TD 10056, IRB 2026-44).

Unconfirmed: We found no official step-by-step description of how control passes from the parent to the young adult in the Trump Accounts app, or whether the official trustee's agreement uses the automatic IRA transfer option. Check the account agreement and the app.

If the child dies

If the child dies during the growth period, the account stops being a Trump Account and an IRA. The person who inherits it includes the value minus basis in income. If the child dies after the growth period, the usual inherited IRA rules apply (IRS: Notice 2025-68, Q&A E-4).

Not tax advice. Talk to a tax professional about your situation.