Treasury Proposes Low-Cost Rules for 530A Trump Accounts as 5 ETFs Qualify Initially
Updated
Updated · CNBC · Aug 20
Treasury Proposes Low-Cost Rules for 530A Trump Accounts as 5 ETFs Qualify Initially
2 articles · Updated · CNBC · Aug 20
Summary
Treasury on Thursday proposed guidance for Trump Accounts that would restrict eligible investments to low-fee index products tracking broad U.S. or global equity markets with objective criteria.
The framework is meant to preserve more long-term returns for children in the tax-deferred 530A accounts by limiting fees and steering assets toward simple diversified funds.
Five ETFs currently qualify, with State Street’s SPYM remaining the default alongside IVV, VTI, SPTM and ITOT; the rules would also apply if families later switch trustees from Bank of New York Mellon.
The proposal builds on Treasury’s earlier move to exclude ESG funds from the accounts, part of a broader push to keep choices cost-focused for a program that has drawn more than 7 million family sign-ups since launch.