Who Controls a Trump Account Before 18?

Every Trump Account has an "authorized individual" who manages it. If you are a parent or legal guardian, that person is almost certainly you. But what exactly can you do with the account — and what are you not allowed to do?

Here is the plain-English breakdown of who controls a Trump Account and how that control works.

What Is an "Authorized Individual"?

Under IRC Section 530A, the authorized individual is the person who manages the Trump Account on behalf of the child. This is typically the parent or legal guardian who opens the account using IRS Form 4547.

Think of it like a trustee. You manage the money for the child's benefit. You make investment decisions. But the money is not yours.

What the Authorized Individual CAN Do

As the authorized individual, you have several important powers:

• Choose eligible index funds. You pick which S&P 500 or broad U.S. equity index fund the money goes into. See our guide to eligible fund requirements.
• Switch between eligible funds. You can move money from one eligible fund to another — for example, from VOO to IVV. Learn more about changing investments.
• Make contributions. You can contribute up to $5,000/year (combined from all sources).
• View statements and track growth. You can monitor the account balance, review investment performance, and check contribution history.

What the Authorized Individual CANNOT Do

• Withdraw funds. No withdrawals before age 18 except for rollovers, return of excess contributions, or death of the beneficiary.
• Invest in non-eligible assets. No individual stocks, bonds, crypto, or any fund that does not meet the S&P 500 or broad U.S. equity index requirement.
• Transfer the account to themselves. The account belongs to the child. It cannot be moved to the parent's name or used as a personal asset.
• Use the account as collateral. You cannot borrow against the Trump Account or pledge it for a loan.

Can Grandparents or Other Relatives Control the Account?

No. Grandparents, aunts, uncles, and other relatives can contribute money to the account, but they do not get management control. Only the designated authorized individual makes account decisions.

If you want to learn more about how family contributions work, read our guide on who can contribute to a Trump Account.

What Happens at Age 18?

This is the big transition. When the child turns 18, the Trump Account converts to a traditional IRA. At that point:

• Full control transfers to the child. The parent is no longer the authorized individual.
• The child can withdraw funds, change investments, or leave the money to grow.
• Standard IRA rules apply — including the 10% early withdrawal penalty before age 59 1/2 (with exceptions).

What if the Authorized Individual Changes?

Life happens. If custody changes — due to divorce, death of a parent, or a guardianship change — the authorized individual can be updated. The new legal guardian would become the authorized individual.

The key point: the account itself does not change. It stays in the child's name, with the same funds and the same balance. Only the manager changes.

For more on how Trump Accounts work from the ground up, check out our glossary of key terms or the full beginner's guide to Trump Accounts.