Trump Accounts — Are employers responding? 

Trump Accounts are a new tax-preferred savings vehicle for individuals under 18 created by the One Big Beautiful Bill Act (OBBBA). These accounts are structured as traditional IRAs that are subject to special conditions until the year the child turns 18. Parents, extended family, employers, and qualifying organizations can contribute to these accounts.

Trump Accounts can begin accepting contributions on July 4, 2026, with an annual contribution limit of $5,000 per eligible child (adjusted for inflation beginning in 2028). The federal government will provide a one-time $1,000 seed contribution for eligible children born between 2025 and 2028.

While employers are not required to contribute, employer contributions up to $2,500 per year are generally excludable from an employee’s income. Employers can also offer employees the option to make pre-tax contributions to their dependent children’s accounts. The $2,500 limit on these contributions applies per employee regardless of how many children the employee has.

As regulatory guidance on Trump Accounts continues to take shape, most employers are choosing to monitor developments before making formal decisions. In a recent poll¹ conducted during Mercer’s Q1 DC Quarterly Webinar, nearly 16% of respondents said they plan to offer Trump Account funding options, either through pre-tax employee contributions or direct employer contributions, or are actively considering doing so. However, more than half indicated they do not currently expect to take any action related to Trump Accounts, and approximately 30% remain undecided.

In a second poll^1,2 conducted during the same webinar, when asked to describe the implementation timeline for Trump Account contribution programs, only 4.9% or respondents anticipate implementation in 2026, while 1.9% are targeting 2027. A larger portion, 35.9%, indicated that timing depends on further guidance, and 57.3% reported that their timeline remains unknown.

These findings suggest that while immediate adoption is not widespread, Trump Account contribution programs are part of broader benefits discussions, making this an appropriate time for employers to monitor regulatory developments, assess employee interest, and evaluate whether future participation may align with their overall benefits strategy.

_{¹ n=234. All responses are sourced from a poll taken during Mercer’s Q1 DC Quarterly Webinar held on February 4, 2026. Responses were provided by attendees of this webinar. It is important to note they did not receive a form of compensation for participating in the poll. It is important to recognize that poll results are subject to inherit limitations and uncertainties. The poll results may not capture all relevant factors or market conditions. These results should not be constructed as personalized investment advice. If you have any further inquiries or require additional information, please do not hesitate to contact us. For a comprehensive list of questions & responses pertaining to the poll results, please contact us.}

_{² n=103. Respondents answered each poll question independently. Responses do not necessarily suggest that an organization previously indicated plans to offer Trump Account contribution programs.}