U.S. Treasury: Trump Accounts Limited to Equity Funds Tracking Indices and U.S. Companies

The U.S. Treasury Department announced new regulatory details on Thursday, clarifying the investment requirements for the 'Trump Accounts' established under last year's tax reform legislation. Funds in these accounts are restricted to equity funds that track indices and heavily invest in U.S. companies, with a cap on fund investment fees set at 0.1% of account assets. The new regulations prohibit the entry of ESG-themed funds, categorizing them as sector funds not permitted under the regulations. Fees for account services charged by custodians are not subject to the fee cap, and the Treasury is soliciting public input to assess whether to limit or eliminate such fees. Additionally, the government is seeking proposals to explore pathways for allowing the transfer of appreciated stock donations into the accounts.