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](https://www.grifin.com/invest-america).

## 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](https://www.grifin.com/post/trump-accounts-vs-529-plans-which-is-better-for-your-child).

## 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](https://www.grifin.com/post/trump-children-s-investment-accounts-how-much-your-child-can-receive) for different contribution scenarios.

To learn more about how the full program works, check out the [Trump Accounts explainer](https://www.grifin.com/post/trump-childrens-investment-accounts-explained).

_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._