The Treasury Department and Internal Revenue Service released proposed regulations this week establishing guidelines for how employers and employees can contribute to Trump Accounts, a new tax-advantaged savings vehicle for minors. According to Treasury Secretary Scott Bessent, the guidance enables employers to make tax-free contributions of up to $2,500 per year for employees’ dependent children, while allowing workers to direct pretax compensation directly into the accounts.
Trump Accounts, formally known as 530A accounts, are available to any U.S. resident under 18 with a Social Security number. Children born between 2025 and 2028 are eligible for a one-time $1,000 deposit from the Treasury as part of a pilot initiative to encourage long-term savings habits. Bessent stated that approximately 7 million children have enrolled in the accounts. Once established, various individuals including parents, guardians, and grandparents may contribute up to $5,000 annually until the year before the beneficiary reaches 18 years old, with employer contributions counting toward this cap.
The proposed rules are currently subject to a public comment period and a scheduled hearing in October before final adoption. Over 50 companies have already announced commitments to offer Trump Account contributions to employees, with some pledging to match the government’s initial $1,000 seed deposit. Industry analysts suggest employer participation could expand following the Treasury’s clarification of compliance requirements. Earlier polling showed limited employer enthusiasm, with only 4% of surveyed companies planning to implement contributions in the near term and two-thirds opting out entirely, though the newly issued guidance may change these calculations.
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