Trump Account Rollovers: Switching Brokerages & Roth Conversions

"Rollover" means different things at different stages of a Trump Account's life. Before age 18, it means switching brokerages. At 18, the account automatically converts to a traditional IRA. After 18, standard IRA rollover rules apply. This guide covers all three phases.

Rollovers Before Age 18: Switching Brokerages

During the growth phase (birth through age 18), the only way to move money out of a Trump Account is a trustee-to-trustee transfer to another Trump Account. This is how you switch brokerages — for example, moving from Schwab to Fidelity to get a lower expense ratio.

How a Trustee-to-Trustee Transfer Works

1. Open a new Trump Account at the receiving brokerage. You'll need the child's SSN and the authorized individual's (parent/guardian) information.
2. Initiate the transfer at the new brokerage. They'll ask for the sending brokerage's account number and details. A "pull" transfer (initiated by the receiving brokerage) is usually faster and easier.
3. The money moves directly between institutions. It never passes through your hands or a personal bank account. The sending brokerage liquidates the fund, transfers the cash, and the receiving brokerage reinvests it.
4. Confirm completion. Check the new account after 1-2 weeks to verify the full balance has arrived and is reinvested.

Rules for Pre-18 Rollovers

• Must be trustee-to-trustee. The money cannot pass through your personal bank account.
• Must go to another Trump Account. You cannot transfer to a 529, UTMA, IRA, or any other account type before 18.
• No limit on frequency. You can switch brokerages as often as you want, though doing so too often means time out of the market.
• No tax consequences. Trustee-to-trustee transfers are not taxable events and don't need to be reported on your tax return.
• Cannot change beneficiaries. The account stays in the same child's name. You cannot roll over to a sibling's Trump Account.

The Automatic Conversion at Age 18

When the beneficiary turns 18, the Trump Account automatically converts to a traditional IRA in the child's name. This is not a rollover you initiate — it happens by operation of law under IRC §530A.

What Changes at 18

Roth IRA Conversion After 18

The most important rollover decision after 18 is whether to convert the traditional IRA to a Roth IRA. This is widely considered the best long-term strategy for Trump Accounts.

How the Roth Conversion Works

1. Open a Roth IRA at the same brokerage (or a different one).
2. Request a conversion — the brokerage moves money from the traditional IRA to the Roth IRA.
3. Pay income tax on the converted amount. The conversion amount is added to your taxable income for that year.
4. Future growth is tax-free. Once in the Roth, all future growth and qualified withdrawals are completely tax-free.

Why Convert During Low-Income Years

The tax hit depends on your child's income in the year of conversion. A college student earning $10,000/year with a standard deduction of ~$15,000 can convert up to $5,000 at 0% federal tax and the next ~$11,600 at just 10%. Converting $15,000-$20,000/year during 4 years of college could move $60,000-$80,000 into a Roth at an effective rate of 5-8%.

Other Rollovers After 18

Once the Trump Account becomes a traditional IRA, standard IRA rollover rules apply:

Direct Rollover (Trustee-to-Trustee)

Move the IRA from one brokerage to another. Same process as a pre-18 Trump Account rollover. No tax consequences, no limits on frequency.

60-Day Indirect Rollover

Withdraw the money, then redeposit it into an IRA within 60 days. This is risky — if you miss the 60-day window, the full amount is treated as a taxable distribution with a 10% early withdrawal penalty (if under 59½). You can only do one indirect rollover per 12-month period.

IRA to Employer Plan (401(k))

If your child starts a job with a 401(k), they can roll the traditional IRA into the employer plan. This can be useful for creditor protection or if the employer plan has low-cost institutional funds.

What You Cannot Roll Into a Trump Account

Trump Accounts only accept cash contributions. You cannot roll over or transfer any other account type into a Trump Account:

• 529 plan — No rollover path to a Trump Account (the SECURE 2.0 Act allows 529-to-Roth IRA, but not 529-to-Trump Account)
• UTMA/UGMA — Cannot be transferred into a Trump Account
• Coverdell ESA — No rollover path to a Trump Account
• Traditional or Roth IRA — Cannot be rolled into a Trump Account
• Another child's Trump Account — Each account is tied to one beneficiary

Rollover Checklist

Before initiating any Trump Account rollover:

1. Compare expense ratios at the new brokerage. Even 0.01% matters over 18 years.
2. Check for transfer fees at both the sending and receiving brokerage.
3. Initiate from the receiving brokerage (pull transfer) for faster processing.
4. Expect 3-14 business days where your money is not invested.
5. Verify completion — confirm the full balance arrived and is reinvested.
6. Keep records of the transfer for your files (though it's not a taxable event).

The Bottom Line

Trump Account rollovers are simple before 18 — you can only switch brokerages via a trustee-to-trustee transfer. The real decision comes at 18: whether to convert to a Roth IRA and how much to convert each year. For most young adults, a gradual Roth conversion during low-income years is the best move.

For the full list of withdrawal exceptions (including penalty-free options after 18), see our withdrawal exceptions guide. For Roth conversion math, see our Roth conversion strategy.