This is partly to be determined. Notice 2025-68 suggests that at 18, the Trump account can either stay a Trump account, or at the custodian's option, automatically become a traditional IRA.
Either way, the pro rata rule still applies on the withdrawals. If the Trump account stays a Trump account, the pro rata rule applies to it in isolation, while if it becomes a traditional IRA, it goes on 8606 with all other IRAs, obviously. The former-minor might owe Kiddie Tax on the taxable portion of the Roth conversion as well.
Your Schwab quote suggests you would have a choice of withdrawing contributions vs. earnings, but there is no support for that in Notice 2025-68, and even Schwab says above, "at which point IRA withdrawal rules will apply".
Either way, the pro rata rule still applies on the withdrawals. If the Trump account stays a Trump account, the pro rata rule applies to it in isolation, while if it becomes a traditional IRA, it goes on 8606 with all other IRAs, obviously. The former-minor might owe Kiddie Tax on the taxable portion of the Roth conversion as well.
Your Schwab quote suggests you would have a choice of withdrawing contributions vs. earnings, but there is no support for that in Notice 2025-68, and even Schwab says above, "at which point IRA withdrawal rules will apply".
Statistics: Posted by Makefile — Tue Feb 10, 2026 2:41 pm — Replies 1 — Views 51