The Treasury Department and Internal Revenue Service on Tuesday released long-awaited guidelines for employer-sponsored contributions to Trump Accounts, the tax-advantaged savings vehicle for children that was a centerpiece of the administration's family policy agenda.
The new rules establish a framework for parents to divert pre-tax dollars from their paychecks directly into their children's Trump Accounts, and they permit employers to match those contributions with up to $2,500 per dependent each year without triggering a tax liability for the employee.
“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,” Treasury Secretary Scott Bessent said in a statement accompanying the release.
The department said more than 50 major employers have already pledged to participate in the program, including financial firms Edward Jones and Vanguard, payment processor Visa, and payroll giant ADP. IRS Chief Executive Officer Frank J. Bisignano touted the corporate buy-in, saying the agency had “worked with more than 50 of the largest employers in the country to prepare them for Trump Accounts.”
Under the program, families can contribute up to $5,000 annually per child under age 18 who has a Social Security number. Employer contributions are deductible as a business expense, and employees do not pay income tax on the amounts contributed on their behalf.
The president formally launched Trump Accounts in July with a ceremonial ringing of the opening bells at the New York Stock Exchange and Nasdaq, framing the initiative as a way to expand wealth-building opportunities for younger Americans. The new guidance is expected to accelerate adoption, though some policy analysts have drawn comparisons to a more progressive proposal known as baby bonds.
A 2025 report from the Brookings Institution noted that baby bonds, which would provide government-funded seed deposits for every newborn, “directly address wealth inequality,” whereas Trump Accounts rely on employer and parental contributions and therefore tend to benefit families with higher incomes. That distinction could become a flashpoint as the program rolls out, especially amid ongoing debates over immigration and economic policy.
Critics have also questioned whether the tax incentives will meaningfully expand savings for lower-income households, while supporters argue that the employer-match structure mirrors successful retirement plan models and encourages a culture of saving. The Treasury guidance is open for public comment, and officials said they expect additional employers to join in the coming months.
The announcement comes as the administration continues to push its broader economic agenda, including legal battles over financial regulations and efforts to reshape federal tax policy. With the 2026 midterms looming, the success of Trump Accounts could become a talking point for both parties.
