Trump Account Proposed Regulations: What Cross-Border Investors and Dual Filers Need to Know

Summary

On August 20, 2026, the U.S. Department of the Treasury and the IRS issued proposed regulations (IR-2026-96) on eligible investments for “Trump Accounts,” a new type of traditional IRA created under the Working Families Tax Cuts. According to the Journal of Accountancy, the proposed rules would restrict Trump Account investments to low-fee stock index funds and ETFs during the growth period. Earlier, on August 11, the IRS released proposed regulations on employer contributions (IR-2026-90) that clarify a $2,500 annual limit for workers and address self-employed owners, Sec. 125 cafeteria-plan contributions, and employer matching of the government’s $1,000 pilot-program contribution. Separately, IRS guidance issued in June offers a gift tax safe harbor under which contributions may qualify for the annual gift tax exclusion and donors may avoid filing gift tax returns.

The rules are still proposed and subject to change, but Canadians with U.S. retirement accounts, dual citizens, and cross-border investors should track the investment scope, contribution limits, and gift tax implications now so they are ready when the final rules land.

Sources

Our Take

For cross-border filers, three practical points stand out. First, the growth-period restriction to low-fee index funds and ETFs means account holders must align investment choices with the rules; those who also hold Canadian RRSPs or TFSAs should evaluate each plan under its own regime. Second, the $2,500 annual contribution cap changes retirement-planning math, especially for dual filers who must coordinate U.S. and Canadian accounts and reporting. Third, the gift tax safe harbor matters for Canadian residents: contributions to a U.S. person’s account may otherwise trigger U.S. gift tax return obligations, and meeting the safe harbor conditions can help contributions qualify for the annual exclusion and avoid filing. Because these are proposed rules, the final version may differ. Anyone weighing specific contributions, gift tax filings, or cross-border retirement planning should consult a licensed CPA.

Disclaimer: This article is general information only and does not constitute tax advice; it should not substitute professional tax counsel. Please consult a licensed CPA for advice specific to your situation.