When can 530A money come out?
The short answer: not before 18, and after that it follows Traditional-IRA rules. The details — verified as of 2026-07-12 against the statute and IRS Notice 2025-68 — are below.
Can I withdraw from a 530A before my child turns 18?
No. The statute permits no withdrawals before the year the child turns 18. There is no hardship, education, or emergency carve-out in the law as verified — the account is locked by design so compounding can work.
What happens at 18?
The child becomes the owner and the account behaves like a Traditional IRA. That means withdrawals are possible but earnings are taxed as ordinary income, and before age 59½ the IRA-style rules (with their usual exceptions) apply.
When are withdrawals penalty-free?
At 59½, following Traditional-IRA treatment. Before that, IRA-style exceptions exist; whether the standard 10% early-withdrawal penalty applies to 530A accounts specifically is still pending confirmation in guidance, so this site labels it an assumption rather than fact.
What part of a withdrawal is tax-free?
Only the basis — the after-tax contributions your family made. The $1,000 federal seed, any employer contributions, and all growth are taxed as ordinary income when withdrawn.
Can the money move to a Roth IRA instead?
After 18, converting to a Roth IRA is an option: income tax is due on the non-basis amount at conversion, and growth afterward is tax-free. Converting in a low-income year (like college) can meaningfully improve the lifetime outcome — model both paths in the Advanced Model.
Can a 530A roll into a 529 college plan?
Not that we can verify. The statute specifies Traditional-IRA treatment at 18 and we could not find a 529 rollover provision, so this site marks that path "not currently permitted" until primary sources confirm otherwise.