IRS announces new rules Trump Accounts for contribution towards employees’ dependent children. All you need to know

The US Treasury Department and Internal Revenue Service (IRS) have proposed new rules that would allow employers to contribute up to $2,500 a year to Trump Accounts for their employees’ dependent children without the contributions being counted as taxable income. The proposed regulations would also allow employees to make pre-tax payroll contributions to their children’s accounts.

The guidance comes as the Trump Account program, also known as 530A accounts and later referred to as Invest America accounts, seeks to expand participation and encourage long-term savings for American children.

What are Trump Accounts?

Trump Accounts are savings and investment accounts designed for US children under the age of 18 who have a Social Security number. Under the program, children born between 2025 and 2028 are eligible for a one-time $1,000 contribution from the US Treasury as part of a pilot initiative.


According to Treasury Secretary Scott Bessent, about 7 million children have already been enrolled in the program.

Once an account is established, parents, guardians, grandparents and other individuals can contribute up to $5,000 annually until the year before the child turns 18.

Employers can contribute up to $2,500 a year

Under the proposed Treasury and IRS rules, employers would be permitted to contribute up to $2,500 annually to Trump Accounts for an employee's dependents.

Eligible employer contributions would not be included in the employee's gross income, providing a tax-free way for companies to support children's long-term savings.

Employers could also allow workers to make contributions to their dependent children's Trump Accounts directly through pre-tax payroll deductions.

“Trump Accounts are giving American families a new way to build wealth from day one,” Treasury Secretary Scott Bessent said in a statement.

“Today, Treasury is publishing guidance that will help families grow Trump Accounts by allowing employers to contribute up to $2,500 tax-free each year for employees’ dependents and giving employees the option to contribute pre-tax dollars directly to those accounts,” Bessent added.

Treasury rules aim to give employers more clarity

The proposed regulations explain how employers can establish and fund Trump Accounts and provide guidance on the administrative and compliance requirements involved in offering the benefit.

Melissa Elbert, partner of wealth solutions at retirement benefits consultant Aon, said the guidance could encourage more employers to consider participating in the program.

“We saw early adoptions, and I think many more are considering it, and this guidance is going to help,” Elbert said.

The proposal is currently open for public comment. A hearing is scheduled for October, after which the regulations could be finalized.

More than 50 companies have committed to Trump Accounts

The Treasury Department has said that more than 50 companies have already committed to contributing to Trump Accounts for their employees.

Some companies are also considering matching the government's initial $1,000 contribution, potentially giving participating children an additional source of funds at the start of their savings journey.

However, employer participation remains uncertain. A Mercer survey of nearly 350 US employers earlier this year found that only about 4% expected to introduce Trump Account contribution programs in 2026 or 2027.

Around two-thirds of the employers surveyed had already decided not to participate, while the remaining companies were undecided before the Treasury released its proposed regulations.

Michael Dell pledges $6.25 billion to Trump Accounts

The employer-focused guidance comes after a major private-sector commitment to the child savings initiative.

In December 2025, Michael Dell announced that the Michael and Susan Dell Foundation planned to allocate $6.25 billion to the program. The money is intended to provide $250 to the accounts of 25 million American children when the program begins.

The foundation said the commitment would exceed its total charitable giving over the previous 26 years.

What happens next?

The Treasury Department and IRS proposal still needs to go through the public comment and regulatory process before it becomes final.

If finalized, the rules would give employers a clearer framework for contributing to Trump Accounts and allow companies to offer the benefit through workplace payroll systems.

For families, the changes could provide another way to build savings for children, with contributions potentially coming from the government, employers and family members.