The U.S. Department of the Treasury announced guidance enabling employer-sponsored contributions to Trump Accounts, allowing employees to make pre-tax contributions to their dependents’ accounts. Employers may contribute up to $2,500 annually tax-free per dependent, with flexible rules for validation and reporting. To establish a program, employers must maintain a written plan, validate account status, provide employee notices, and submit annual reports. Over 50 companies have committed to contributions, enabling children ineligible for the initial $1,000 Treasury contribution to receive tax-free funds. Treasury Secretary Scott Bessent emphasized the guidance helps families build wealth, while IRS CEO Frank Bisignano noted it provides a framework for businesses. Employers must follow certification procedures and ensure contributions go to verified Trump Accounts.
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