Trump Accounts Could Take Pre-Tax Paycheck Contributions—Here’s What To Know
The Treasury Department on Tuesday issued guidance that could allow parents to make pre-tax contributions to their child’s Trump Account directly from their paycheck, with potential matching from employers, after a poll indicated a small percentage of companies would seek out a contribution program.
Treasury Secretary Scott Bessent, in a statement Tuesday, said the agency is publishing guidance that would allow employers to contribute up to $2,500 in pre-tax funds each year for employees’ dependents, while also allowing the employees to contribute pre-tax funds to Trump Accounts.
More than 50 companies have committed to Trump Account contributions, according to the Treasury, though it’s unclear which firms are involved—IRS chief Frank Bisignano said the agency had worked with some of the “largest employers in the country to prepare them for Trump Accounts.”
The proposal still requires public comment and a hearing, scheduled for Oct. 13, before the Treasury and IRS can finalize it.
A Mercer poll of roughly 350 employers in April found that just 4% of companies expected to implement Trump Account contributions in 2026 and 2027, and two-thirds decided not to make or facilitate contributions to these accounts. The remaining firms were undecided.
7 million. That’s how many children have signed up for Trump Accounts as of late July, Bessent said in a speech last month, calling the program the “most successful launch in government history.”
The Treasury launched Trump Accounts on July 4 as a long-term IRA-style retirement fund that can be started by anyone under age 18 by an authorized adult. By the time the beneficiary reaches adulthood, the Trump Accounts, or 530A accounts, will convert to a traditional IRA. Family members and other contributors can add funds to the accounts on behalf of children, and the money will then be invested in U.S. stock funds and grow tax-deferred. The accounts include $1,000 seed deposits from the Treasury, with other pledges for additional seed money from billionaire Michael Dell and his wife Susan. The Treasury announced last month it would allow philanthropic contributions of “readily tradable public company stock” to support the accounts, and several executives have signaled they would contribute shares. SpaceX president Gwynne Shotwell said last month she would gift a share of SpaceX stock to each of more than 2 million children.