What employers need to know about Trump accounts 

Since July 2026, employers have been able to voluntarily contribute to Trump accounts (sometimes referred to as 530A accounts) of employees’ dependent children. Created by the One Big Beautiful Bill Act (Pub. L. No. 119-21), these accounts are a new kind of tax-preferred savings vehicle for individuals under 18. Employer contributions up to $2,500 per year are excludable from an employee’s gross income if made pursuant to a program that meets certain conditions. This tax exclusion also applies to employer contributions to accounts of employees who are under 18. This article has been updated repeatedly since its initial publication to reflect guidance issued by the IRS and Department of Labor. The latest update discusses proposed regulations on Internal Revenue Code Section 128 employer contribution programs, including related nondiscrimination rules.

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