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The Treasury Department and Internal Revenue Service (IRS) announced guidelines for employer-sponsored programs for contributions to Trump accounts, a tax-deferred investing option for children.
The Tuesday announcement outlines a process that parents could use to make pre-tax contributions to their child’s Trump account directly from their paychecks with a potential match from employers.
“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 press release about the guidance.
The Treasury Department stated that over 50 companies have already committed to contributions for their employees. Corporate partners for the program include Edward Jones, Vanguard, ADP and Visa.
“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,” IRS Chief Executive Officer Frank J. Bisignano stated in a statement Tuesday.
Trump accounts allow parents and employers to contribute up to $5,000 per year to individual retirement accounts on behalf of any child under the age of 18 with a Social Security number. These contributions are generally deductible by the employer and are excluded from employees’ taxable income.
The president marked the launch of the accounts in July by ringing the opening bells of the New York Stock Exchange and Nasdaq.
A Brookings Institution report from 2025 compared the program to baby bonds, which proposed the government would make an initial deposit into an account for each newborn baby in the U.S., before making additional deposits throughout childhood. It would deposit the most money into the poorest households.
The report from the Brookings Institution, though, noted baby bonds “directly address wealth inequality,” unlike Trump Accounts.
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