IRS Proposes New Investment Rules for Trump Accounts: What Parents Need to Know

The IRS and Treasury Department proposed new rules on August 20 governing investments in Trump Accounts for children. During the accounts’ growth period, funds generally would be limited to qualifying low-cost mutual funds and ETFs that track indexes made up primarily of U.S. companies. fizkes/Shutterstock

The IRS has proposed new rules governing how money in Trump Accounts for children can be invested, including strict limits on fund fees, leverage and the types of stock indexes the investments can track.

The Department of the Treasury and Internal Revenue Service issued the proposed regulations on August 20 as part of the ongoing rollout of Trump Accounts, a new type of traditional individual retirement account created for eligible children under the Working Families Tax Cuts.