After the growth period ends (January 1 of the year the child turns 18), the Trump account operates like a traditional IRA. Distributions become available but may be subject to:
- Ordinary income tax on earnings and non-basis amounts
- 10% early withdrawal penalty (unless an exception applies, such as for education or first home purchase)
Note: The information on the Trump Account is intended for information and educational purposes only. Interactive Brokers will continue to update and to share additional information as details are finalized.