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Treasury, IRS Propose Trump Account Low-Fee Index Limits

8/21/2026

Summary

Treasury Limits Investments

The U.S. Treasury Department and the Internal Revenue Service proposed regulations limiting Trump Account investments to low-fee index funds.
Eligible investments must be index-tracking mutual funds or ETFs, use no leverage, and charge fees of 0.1% or less.
State Street SPDR Portfolio S&P 500 ETF (SPYM) is the default, with four additional low-cost ETFs permitted.
A federal seed contribution applies to children born Jan 1 2025–Dec 31 2028; comments close Oct 20 2026.

Summary

Trump Accounts Enroll

More than 7 million families have enrolled in the Trump Account program since the July 4 launch.
Over 2 million enrollees qualify for a federal seed contribution for children born 2025-2028.
Individual and pilot-program contributions total $1.5 billion, not counting philanthropic donations.
Billionaires Michael and Susan Dell have donated $6.25 billion, providing seed deposits for children under age 10.
IRS Chief Frank Bisignano warned that even minimal fee differences can sharply reduce a child’s future balance.

History

Historical Context

The 1997 Taxpayer Relief Act, championed by Senators William Roth and Bob Packwood, created the first 529 college-savings accounts and introduced a $500 child tax credit. By 2005 the IRS recorded roughly $10 billion in 529 assets. The Treasury’s current “Trump Account” proposal echoes that model, limiting investments to index funds under 0.1% fees and inviting donors such as Michael Dell.

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Treasury Limits Investments

The U.S. Treasury Department and the Internal Revenue Service proposed regulations limiting Trump Account investments to low-fee index funds.
Eligible investments must be index-tracking mutual funds or ETFs, use no leverage, and charge fees of 0.1% or less.
State Street SPDR Portfolio S&P 500 ETF (SPYM) is the default, with four additional low-cost ETFs permitted.
A federal seed contribution applies to children born Jan 1 2025–Dec 31 2028; comments close Oct 20 2026.

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