No money may come out before the year the child turns 18
What the document says“Except as otherwise provided in this subsection, no distribution shall be allowed before the first day of the calendar year in which the account beneficiary attains age 18.”
The section bars any distribution before the first day of the calendar year in which the beneficiary turns 18, except for a qualified rollover contribution, a qualified ABLE rollover contribution made in the year the beneficiary turns 17 that moves the whole balance to an ABLE account, and a distribution of excess contributions, which is not counted as income but on which tax is increased by 100 percent of the net income attributable to the excess. Where the beneficiary dies before that year the bar does not apply, the account stops being a Trump account on the date of death, and the fair market value less the investment in the contract is counted in the income of whoever takes the interest or of the beneficiary's last taxable year if the estate takes it. In applying section 72, the investment in the contract leaves out general contributions, pilot contributions and employer contributions excluded under section 128.
What the document actually says“Except as otherwise provided in this subsection, no distribution shall be allowed before the first day of the calendar year in which the account beneficiary attains age 18.”
No money may be taken out early. The bar lifts on the first day of the year the child turns 18. A few exceptions follow.
The whole balance may be rolled to another such account. At age 17 it may move to a disability savings account. Money paid in over the cap may be taken back out.
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