Departments Issue Proposed Rule on Eligible Investments for Trump Accounts; Comments Due October 20

The U.S. Department of the Treasury (Treasury) and the Internal Revenue Service (IRS) issued a proposed rule providing guidance on the types of mutual funds and exchange-traded funds that will be eligible investments for Trump accounts. These are the only assets in which Trump account funds may be invested before the first day of the calendar year in which the account beneficiary turns 18.

The proposed rule affects account beneficiaries and trustees of Trump accounts, and establishes a framework for the designation of eligible investments for future Trump account trustees, including rollover trustees. Under the framework, an eligible index must be designed primarily to measure the performance of a broad segment of the U.S. or global equity market using objective financial criteria.