Guide

What happens to a 530A account at 18?

Last checked October 8, 2026

Two dates, not one

The law’s date is January 1 of the year the child turns 18. That is when the ban on withdrawals lifts.¹ The period before it ends on December 31 of the year the child turns 17.⁴

Treasury’s website for families speaks of the birthday instead: it says the account transfers to the child’s control, and the funds can be accessed, when the child turns 18.³ If the difference matters for you, ask the company holding the account which date it uses.

What ends

• The ban on withdrawals.¹
• The $5,000 yearly limit and the other childhood contribution rules, which apply only to contributions made before that year.¹
• The rule that the account may hold only low-cost US stock index funds.¹

What begins

The rules for traditional IRAs generally apply. The IRS lists contributions, distributions, required minimum distributions, rollovers, Roth conversions, ordinary income taxation and reporting.²

• New contributions are limited by the ordinary IRA contribution limit.²
• Withdrawals are taxed, and one made before age 59½ can carry a 10% additional tax unless an exception applies.² See how withdrawals are taxed.

Does it stay a 530A account?

It does not automatically stop being one. But the account’s own terms may provide that, after childhood, everything in it is transferred to a traditional IRA.²

What stays different

The tax-free share of a withdrawal is worked out on the 530A account alone, separately from any other IRAs the person owns.¹

What has not been settled

The IRS says it expects to issue more guidance on how these accounts are taxed after childhood.² How a Roth conversion would work has not been published.