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. The 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 IRS temporary regulations on general requirements for establishing Trump accounts, including automatic enrollment of eligible individuals by Treasury starting on October 1, 2026. On the same day, IRS issued proposed regulations that are identical to the temporary regulations, except for their applicability provisions. The IRC mandates that temporary regulations stay in effect for no more than three years, and that they be issued concurrently with proposed regulations that are open for public comment. Comments are due November 30.

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