3 weeks ago
Treasury Allows Employers Tax-Free Trump Account Contributions for Dependents
Imagine a special savings account called a Trump Account where grown-ups can put money to help kids in the future.
The government has new rules that let bosses, called employers, put money into these accounts for their workers' children.
A boss can add up to $2,500 every year without the worker having to pay tax on that money.
Workers can also choose to put some of their own pay into their kids' accounts before taxes are taken out.
More than 50 companies have already agreed to give money to Trump Accounts for their employees.
The government wants the rules to be fair, so companies cannot give only their highest-paid workers this benefit.
People who want to share their opinion about the new rules can do so until September 25.
The goal is to help American families save money and build wealth starting when kids are young.
The US Department of the Treasury and IRS issued proposed regulations on August 11 letting employers contribute up to $2,500 tax-free per year to Trump Accounts for employees' dependents.
More than 50 companies have committed to making Trump Account contributions for their employees, according to the Treasury.
Under the Working Families Tax Cuts, employees can make pre-tax contributions to dependents' Trump Accounts through employer cafeteria plans.
The proposed rules include nondiscrimination requirements meant to prevent preferential treatment of highly compensated employees.
Public comments are due by September 25, 2026, with a hearing on October 15, 2026; the $1,000 pilot contribution covers US citizen children born between 2025 and 2028.
- Who
- US Department of the Treasury, the IRS, Treasury Secretary Scott Bessent, IRS CEO Frank J. Bisignano, and employers sponsoring Trump Account contribution programs.
- What
- Issuance of proposed regulations allowing employers to contribute up to $2,500 tax-free per year to Trump Accounts for employees' dependents.
- Where
- United States.
- When
- Guidance issued on August 11; public comments due September 25, 2026; public hearing October 15, 2026.
- Why
- To give businesses a tax-preferred benefit that helps employees build family wealth and supports employee recruitment and retention.
Key facts
- Issuing agencies
- US Department of the Treasury and Internal Revenue Service (IRS)
- Employer contribution limit
- $2,500 tax-free per year per dependent
- Guidance date
- August 11 (proposed regulations)
- Companies committed
- More than 50
- Public comment deadline
- September 25, 2026
- Public hearing
- October 15, 2026 — requests to speak due October 13
- Pilot Treasury contribution
- $1,000 for US citizen children born between 2025 and 2028
- Account opening form
- IRS Form 4547, Trump Account Election(s)
Quotes
Scott Bessent
Treasury Secretary
“"Trump Accounts are giving American families a new way to build wealth from day one."”
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