New Trump Account Rules Outline Investment Requirements for Families : Weekly Tax News from Around the Block
As families across Northwest Georgia prepare for changes to the tax landscape, understanding new federal rules can help taxpayers make informed financial decisions. Among the changes receiving attention are proposed regulations governing Trump Accounts, which outline how funds can be invested during a child’s early years. The rules establish specific requirements for the types of investments that may be held in these accounts, as well as responsibilities for trustees overseeing them.
The proposed regulations provide detailed requirements for investments held in Trump Accounts during the growth period, which ends December 31 of the year the beneficiary turns 17. Eligible investments generally must be low-cost mutual funds or ETFs that track a qualifying equity index made up primarily of U.S. companies, do not use leverage, and charge no more than 0.1% in annual fees and expenses. Actively managed funds, funds tracking multiple indexes, sector-specific funds, and funds tied to environmental, social, and governance indexes would not qualify.
Trustees would be required to offer only eligible investments, establish and disclose a default investment, and review each fund’s eligibility at least once every 12 months. If a fund becomes ineligible or an administrative error occurs, the trustee generally would have 30 days to sell the investment and reinvest the proceeds in an eligible fund. Most provisions would apply to tax years beginning on or after January 1, 2026, while the trustee procedure requirements would apply after final regulations are published. To find out more information you can call us to set up an appointment or visit the federal register at https://www.federalregister.
This story was written by Reagan Manning, marketing director of H&R Block in Rome. Manning will be sharing practical tax tips and timely information designed to help taxpayers across Northwest Georgia better understand changes in tax laws, regulations and filing requirements. Through this ongoing series, local readers can find useful information to help them make informed tax decisions and prepare for the upcoming tax season.
H&R Block has been a trusted name in tax preparation for over 70 years. We have been an established branch in Rome for more than half of that time, and a locally owned franchise for almost 20 years. Things shared are from H&R Block corporate, the IRS, or local expertise from an enrolled agent or qualified tax preparer that we feel is important to share locally. We hope to help our community keep up with some of the tax changes and news that occur throughout the year that may impact or help them. Consultation appointments and questions at our Rome locations are always free.
