Trump Accounts could become workplace benefit as employers may add $2,500 for children
Trump Accounts could become a workplace benefit, allowing employers to contribute up to $2,500 yearly toward savings accounts for employees’ children.
The Trump Administration is working on a proposal that could turn the new "Trump Accounts" for children into a workplace benefit, potentially allowing employers to contribute up to $2,500 per year towards a child's account, in addition to employees making pretax contributions. The accounts, also known as 530A accounts, are designed to help families start building wealth for children from an early age.
Employers can contribute to the accounts on behalf of employees' children without those contributions being counted as taxable income for the worker. The proposed regulations are still subject to public comment and a formal adoption by Treasury and IRS. About 7 million children have been enrolled in the pilot program, with the potential for employers to contribute to the accounts on top of the government's $1,000 seed contribution.
However, corporate enthusiasm for the program remains mixed, with only around 4% of nearly 350 US employers expected to introduce a Trump Account contribution program in 2026 or 2027.
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