What employers need to know about Trump accounts 

Starting in July 2026, employers can begin voluntarily contributing to the Trump 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. Originally published on August 5, 2025, this article has been updated to reflect Department of Labor guidance clarifying that Trump accounts and related employer contributions programs generally won’t be considered ERISA plans if employers meet certain conditions.

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