Comments on What Trump Accounts Can Invest In Close Tuesday
The proposed IRS rules define the only investments allowed in the new children's accounts before age 18: low-cost U.S. stock index funds.
The public comment period on the IRS's proposed rules for what Trump accounts can invest in closes Tuesday, October 20. Trump accounts are the savings accounts for children created by the 2025 tax law, and until January 1 of the year a child turns 18, the money in them can be held only in what the law calls eligible investments.
Under the statute the proposed rules interpret, an eligible investment is a fund that tracks a qualified index, such as the S&P 500 or another index made up mainly of U.S. company stocks with regulated futures traded on it, and that charges annual fees and expenses of no more than 0.1 percent of the balance. The proposal fills in details, such as how much discretion an index fund's managers can use in replicating the index before a fund stops qualifying.
The rules affect account beneficiaries and the trustees who hold the accounts. Comments and requests for a public hearing must be received by October 20, preferably at regulations.gov, citing IRS and docket CC-00349938-26.
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