IRS Notice 2025-68 and proposed regulations require that all Trump Accounts invest in broad-based U.S. equity index funds or ETFs with expense ratios capped at 0.10%. No leverage, no individual stocks, and no sector funds.
The same rules apply to every account in your household. Custodians must offer compliant options (most major firms already do).
Industry Alignment and Target Funds
Financial institutions are currently updating their digital infrastructure and product suites to align with these federal mandates.
- Fund Compliance: Leading custodians have already updated their target-date solutions and index fund offerings to meet the fee caps and investment constraints mandated by the OBBBA.
- Market Readiness: This alignment ensures that as families transition from the default Treasury custodian to private brokerages, the available investment options remain within the 0.10% cost threshold