Treasury officials released proposed rules Tuesday allowing American workers to fund their children’s Trump Accounts with pretax paycheck dollars—and letting employers chip in up to $2,500 per year tax-free.
The guidance from Treasury and the IRS outlines how the new 530A accounts, created for children under 18, can be fed through workplace programs similar to 401(k) contributions. Parents could redirect pre-tax earnings straight into their kids’ accounts each pay period, while companies that choose to participate could match those contributions without the money counting as taxable income.
“Trump Accounts are giving American families a new way to build wealth from day one,” Treasury Secretary Scott Bessent said in a statement announcing the proposed regulations.
How Workplace Contributions Would Work
Under the proposal, employers would set up payroll systems allowing workers to allocate a portion of their pre-tax salary to their dependent children’s Trump Accounts. The mechanics would mirror how employees currently fund Health Savings Accounts or traditional 401(k)s—money comes out before federal income tax hits.
Companies offering the benefit could contribute their own funds as well, up to $2,500 annually per employee’s dependent, with those employer dollars excluded from the worker’s gross income for tax purposes. That means no income tax, no Social Security tax, and no Medicare tax on the employer match.
Public Comment Period Before Final Rules
The regulations remain in proposed form, subject to public comment and a hearing scheduled for October before Treasury and the IRS can finalize the framework. Monday’s notice of proposed rulemaking laid out the technical details for how employers establish and administer the accounts.
Trump Accounts, available to any U.S. child under 18, represent a new tax-advantaged savings vehicle beyond existing options like 529 education plans or custodial investment accounts. The proposed employer contribution feature adds a workplace benefit angle that could make the accounts more accessible to middle-income families who get health insurance and retirement matches through their jobs.
The October hearing will determine whether the $2,500 employer cap, the pre-tax treatment, and other technical provisions survive pushback from tax policy experts and business groups before the rules take final effect.
Key Points
- Parents could fund kids’ Trump Accounts with pre-tax paycheck dollars under proposed Treasury rules
- Employers could contribute up to $2,500 annually per dependent without it counting as taxable income
- Regulations face public comment period and October hearing before final implementation
https://www.cnbc.com/2026/08/11/trump-accounts-employer-match-paycheck-contributions-treasury.html – August 11, 2026
