The IRS and Treasury have proposed regulations defining eligible investments for Trump Accounts, a new type of traditional IRA under the Working Families Tax Cuts. Funds in these accounts may only be invested in eligible investments during the growth period, which lasts until the beneficiary turns 17. Eligible investments include low-fee mutual funds or ETFs tracking U.S. equity indexes like the S&P 500, with annual fees no higher than 0.1%. If no selection is made, trustees will automatically choose an eligible investment. The rules, effective for tax years starting in 2026, aim to clarify investment criteria and apply to accounts opened before a child turns 18. A public comment period ends October 20, 2026. Parents can enroll children in the account via IRS Individual Online Account and opt for a $1,000 pilot contribution for eligible children born in 2025–2028.
Made by AI. If you spot anything of concern write us at contact@cybach.com. We’ll promptly correct irregularities.