The Treasury Department and Internal Revenue Service issued proposed regulations on August 20 governing eligible investments for Trump Accounts, a new type of traditional IRA created under the Working Families Tax Cuts, aiming to provide clarity for trustees and beneficiaries.
Trump Accounts operate within a "growth period" that begins when the account is established and ends on December 31 of the calendar year in which the beneficiary turns 17. During this period, eligible investments are restricted to mutual funds or exchange-traded funds that track an equity index of primarily U.S. companies, such as the S&P 500, do not use leverage, and have annual fees and expenses of no more than 0.1 percent of the fund balance. After the growth period ends, investment restrictions no longer apply.
If an account beneficiary does not select an eligible investment, funds in a Trump Account automatically will be invested in an eligible investment selected by the trustee. The regulations provide rules for determining whether an investment qualifies and procedures for trustees to ensure compliance.
Parents, guardians, and other authorized individuals can open a Trump Account for a child with a Social Security number using the IRS Individual Online Account to complete Form 4547. The election must be made before the calendar year in which the child turns 18. For children who are U.S. citizens born between 2025 and 2028, the parent or guardian can elect a $1,000 pilot program contribution.
The proposed regulations take into account stakeholder comments from Notice 2025-68, issued in December 2025. The IRS is requesting additional public comments by October 20, 2026. The regulations are expected to apply to tax years beginning January 1, 2026, or later.