SeedlistParent guide · Source retrieved Oct 26, 2026
When can the money be taken out? What happens at 18?
Before the year your child turns 18, money generally can’t be taken out. Starting January 1 of the year they turn 18, the account follows traditional IRA rules. Withdrawals are allowed, but one may owe a 10% additional tax unless an exception applies, such as qualified higher education expenses, a first home purchase, or being over 59½.
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Who can add money, and how much?Family members, employers and others can contribute.What is the money invested in, and are there fees?Until the year your child turns 18, the money must be in a mutual fund or ETF that tracks the S&P 500 or another index made up mainly of U.S.Can a Trump Account lose money?Yes, the balance can go down as well as up.