The Treasury Department and the Internal Revenue Service (IRS) provided new guidance on how employers can contribute to Trump Accounts, also known as Section 530A accounts. President Donald Trump’s One Big Beautiful Bill created the tax-advantaged investment accounts for children. Trump accounts became available on July 4, 2026.
U.S. Treasury has made a $1,000 contribution to Trump Accounts for children born in the United States between 2025 and 2028. After establishing a Trump account, parents, guardians, and other individuals can contribute up to $5,000 annually until the year before the child turns 18. The annual contribution limit will increase with inflation beginning in 2028.
The newly released guidance provides that employers may make tax-free contributions of up to $2,500 annually to Trump accounts for their employees or the employees’ dependents. The $2,500 sum would count toward the annual $5,000 contribution limit. To maintain a Trump account contribution program, employers would have to take the following actions:
- Create a separate written plan document concerning the program;
- Follow certification procedures as to the age and dependent status of the account beneficiary and the fact that the funds are being deposited into a Trump account;
- Provide notices and annual statements to employees;
- Provide certain data to the Trump account trustee.
The guidance also clarifies that eligibility to participate in a Trump Account contribution program, or a dependent care assistance program, must not discriminate in favor of highly compensated employees or their dependents.
HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.
