Trump Accounts for employers and business owners
An employer can give up to $2,500 a year, tax-free to the employee, to the Trump Account of an employee or their child. The rules are still being finished, so here is what is known and how to prepare.
Prepared by Prem Tax and Accounting Corp. Last checked against official sources on October 9, 2026.
The basics
- Limit: $2,500 per year per employee (or their dependent's account), adjusted for inflation after 2027.
- For the employee: not included in income, if the plan meets the rules.
- Part of the $5,000 cap: an employer contribution counts toward the yearly limit for the child's account.
- Where it goes: into the Trump Account of the employee or the employee's dependent, which must be claimed first.
- No basis: employer money is taxed to the child when withdrawn later.
What the proposed rules require
The IRS and Treasury proposed these rules on August 11, 2026 (IR-2026-90). They are not final.
- A separate written plan of the employer, for the exclusive benefit of employees.
- Nondiscrimination: eligibility must not favor highly compensated employees.
- Notice and reporting to employees, similar to the rules for a dependent care assistance program.
- Contributions made to valid Trump Accounts of employees or their dependents.
Dates to know
| Date | What |
|---|---|
| Aug 11, 2026 | Proposed regulations issued |
| Sep 25, 2026 | Comment period closed |
| Oct 13, 2026 | Last day to ask to speak at the hearing |
| Oct 15, 2026 | Public hearing |
| After that | Final regulations |
What to do now
Decide if the benefit fits your business
Think about cost, who is eligible, and whether employees will actually claim accounts.
Talk to us before you announce it
The details of the final rules matter: the written plan, who is covered, payroll treatment and year-end reporting.
Set up the plan and the paperwork
A written plan, employee notices, a way to confirm each employee's account, and the payroll process.
Tell employees what they need to do
Parents must claim the child's account before an employer can contribute.
We run payroll in every state and can design the plan, handle the reporting and keep you compliant. Book a 20-minute call or see our payroll service.
Common questions
How much can an employer contribute?
Up to $2,500 a year to the Trump Account of an employee or the employee's dependent, adjusted for inflation after 2027. It is excluded from the employee's income, and it counts toward the $5,000 yearly limit.
Do I need a written plan?
Yes. The proposed rules require a separate written plan for the exclusive benefit of employees, similar to a dependent care assistance program, with nondiscrimination, notice and reporting requirements.
Can I give it only to owners or managers?
No. The plan's eligibility must not favor highly compensated employees. Offering a benefit only to owners or managers would not meet the nondiscrimination requirements.
Are the rules final?
No. The proposed regulations were issued August 11, 2026. Comments closed September 25, and a public hearing is set for October 15, 2026. Final rules come later.
Is it deductible for the business?
Generally, compensation-type benefits you provide to employees are deductible business expenses, but the details depend on the final rules and your entity. Ask us before you start.
Official sources
Let's talk about your taxes, your business, your plans.
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