The Treasury Department and Internal Revenue Service announced new guidelines Tuesday aimed at helping employers and families contribute to Trump Accounts, the tax-deferred investment option established for children.
The new guidance lays out a process allowing parents to make pre-tax contributions to their child’s Trump Account directly through their paychecks while potentially receiving additional contributions from their employers.
Treasury Secretary Scott Bessent said the guidelines will allow employers to contribute as much as $2,500 annually on a tax-free basis for employees’ dependents.
“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 said in a statement accompanying the announcement.
According to the Treasury Department, more than 50 companies have already committed to making contributions for their employees.
Corporate partners participating in the program include Edward Jones, Vanguard, ADP and Visa.
IRS Chief Executive Officer Frank J. Bisignano said the agency has worked with dozens of major employers to prepare them for the new accounts.
“We have worked with more than 50 of the largest employers in the country to prepare them for Trump Accounts and are proud to share their outlook on this new option,” Bisignano said Tuesday.
Trump Accounts allow parents and employers to contribute up to $5,000 annually to individual retirement accounts on behalf of children under the age of 18 who have a Social Security number.
Employer contributions are generally deductible by the company and are excluded from the employee’s taxable income.
The new Treasury and IRS guidance provides another avenue for employers to participate in the program while allowing employees to direct pre-tax money into accounts established for their children.
President Donald Trump formally marked the launch of Trump Accounts in July, ringing the opening bells at both the New York Stock Exchange and Nasdaq.
The program has also drawn comparisons to other proposals designed to establish investment accounts for children.
A 2025 report from the Brookings Institution compared Trump Accounts with so-called baby bonds, a proposal under which the federal government would make an initial deposit into an account for every newborn child in the United States before adding additional deposits throughout the child’s youth.
Under the baby bonds proposal described in the Brookings report, the government would provide the largest deposits to children in the poorest households.
However, the report highlighted a significant distinction between that proposal and Trump Accounts, stating that baby bonds “directly address wealth inequality,” unlike Trump Accounts.
Tuesday’s announcement from Treasury and the IRS focused on providing families and employers with guidelines for taking advantage of the Trump Account program.
With more than 50 companies already committed to making contributions, the administration is laying out how employers can participate while giving parents another way to direct pre-tax earnings toward investment accounts established for their children.
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