The Treasury Department announced proposed guidance governing eligible investments in Trump Accounts.
Details: Treasury said the proposed guidance:
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Would support the long-term growth of the accounts by limiting eligible investments to choices with low expense ratios and excluding products with excessive fees or unnecessarily complex strategies.
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Would allow children to benefit more fully from decades of compound growth and ensure that a greater share of investment returns remain in their accounts.
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Establishes a framework for the designation of eligible investments for future Trump Account trustees, including rollover trustees.
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Is intended to provide families with clear, transparent investment choices focused on cost, diversification, and long-term financial performance.
Account Developments:
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Treasury and the IRS last week issued proposed regulations providing guidance to employers that choose to make contributions to Trump Accounts for employees or their dependents.
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The Treasury Department last month announced the official launch of the full Trump Accounts app.
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Treasury in April designated the Bank of New York Mellon as a financial agent of the U.S. government to support implementation of Trump Accounts.
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Treasury and the IRS in March proposed regulations to provide guidance on a Trump Account pilot program, which will feature one-time $1,000 contributions for eligible children.