Trump Account Proposed Regulations: What Cross-Border Investors Should Know

Summary

In August 2026, the U.S. Treasury and the IRS issued two rounds of proposed regulations on "Trump Accounts," a new type of traditional IRA created under the Working Families Tax Cuts. IR-2026-96 (Aug. 20) addresses eligible investments for these accounts; IR-2026-90 (Aug. 11) provides guidance for employers that choose to contribute to accounts for employees or their dependents. 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, and they clarify the $2,500 contribution limit for workers, along with rules for self-employed owners, Sec. 125 cafeteria-plan contributions, and employer matching of the government's $1,000 pilot-program contribution. Earlier, The Tax Adviser (AICPA) reported that the IRS has offered a gift tax safe harbor for contributions to Trump Accounts, setting out conditions under which contributions qualify for the annual gift tax exclusion and donors can avoid filing gift tax returns. These are proposed rules, not final ones, so the details could still change before they take effect.

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Our Take

For cross-border filers, Trump Accounts raise a few practical questions. Canadians living in the United States and U.S. persons holding retirement accounts north of the border should think about how a new IRA type interacts with the Canada–U.S. Tax Convention's pension provisions, which generally determine which country taxes retirement distributions; each account type can be treated differently. For contributors, the gift tax safe harbor matters for families who want to fund accounts for children or dependents — whether contributions count against the annual exclusion can change a family's U.S. compliance burden. On the Canadian side, holding a U.S. IRA can carry its own reporting requirements, so dual filers need to coordinate both sides of the border. Since these are proposed regulations, the final rules may differ. For questions about your specific situation, consult a 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.