WASHINGTON--The Internal Revenue Service’s proposed Trump Accounts rule appropriately confirms that credit unions can serve as rollover institutions. Comments submitted Friday to the IRS by America's Credit Unions contain suggestions to ensure operational rules support this practice.
America’s Credit Unions said it has consistently advocated for credit unions to be included as authorized providers of Trump Accounts, government-backed, tax-advantaged investment accounts for children created by H.R. 1.
ACU said the IRS should:
- Ensure the initial trustee supports simple rollovers and that credit unions can communicate with members and operate as trustees on equal footing with banks
- Clarify how credit unions can satisfy the equity index investment requirement, work with credit union service organizations, serve member children, and price their services within the 0.10% fee cap
- Streamline reporting, provide safe harbors for receiving trustees, and allow narrow operational exceptions to the entire-balance transfer requirement
- Update the nonbank trustee qualification standards and broaden the authorized individual and election rules to expand access
America’s Credit Unions President/CEO Scott Simpson previously wrote how credit unions’ focus on long-term wealth building aligns with the purpose of Trump Accounts.