The U.S. Treasury Department and IRS on Tuesday released proposed regulations detailing how employers and employees can fund Trump Accounts, a new tax-deferred investment vehicle for children established under the One Big Beautiful Bill Act. The guidance allows employers to contribute up to $2,500 per year tax-free to accounts for employees' dependents under 18, while also permitting employees to direct pre-tax payroll deductions to the accounts.
The Treasury and IRS announcement follows a July 27 meeting where Treasury Secretary Scott Bessent stated that 7 million children had already been enrolled in Trump Accounts, with $1.5 billion invested. The proposed rules are subject to a public comment period and a hearing in October before finalization.
Who can contribute and how much
Trump Accounts are available to any U.S. child under 18 with a Social Security number. Parents, guardians, grandparents, and others may contribute up to $5,000 annually until the year before the beneficiary turns 18. Employers may contribute either as pre-tax payroll additions or as direct post-tax contributions. Children born between 2025 and 2028 are eligible for a one-time $1,000 Treasury deposit as part of a pilot program.
Employer participation requirements
The Treasury guidance outlines five steps employers must follow to contribute to Trump Accounts:
- Maintain a separate written plan document.
- Follow certification procedures, including reliance on employee self-certification of the child’s age and dependent status, with validation that the account is a Trump Account.
- Provide notices to employees.
- Issue annual statements to employees.
- Report contributions to the Trump Account trustee.
Treasury officials noted that 50 companies have already committed to contributing to the accounts. Bessent emphasized that the accounts are designed to help families build wealth from birth, stating in a press release that the guidance will enable employers to contribute up to $2,500 tax-free per year and allow employees to fund accounts with pre-tax payroll deductions.
Pilot program enrollment and funding
As of the July 27 meeting, 7 million Trump Accounts had been claimed, with $1.5 billion invested across personal and pilot contributions. The Treasury’s pilot program offers a $1,000 initial deposit for eligible children born between 2025 and 2028, intended to encourage early savings. The accounts operate under the 530A designation, a new tax-advantaged category created by the One Big Beautiful Bill Act.