WASHINGTON — American companies will have a new way to help employees build savings for their children under Treasury Department guidance that allows employers to make tax-free contributions to Trump Accounts.
The Treasury Department this week outlined rules for employer-sponsored Trump Account programs, providing a framework for companies to contribute as much as $2,500 annually to accounts established for employees or their dependents. Employees will also be able to direct pre-tax compensation into the accounts through workplace cafeteria plans.
The guidance could turn Trump Accounts, created as part of President Donald Trump’s 2025 tax law, into a new category of employee benefit alongside retirement contributions, health savings accounts and other tax-advantaged workplace programs.
“Trump Accounts are giving American families a new way to build wealth from day one,” Treasury Secretary Scott Bessent said. He said the new rules are intended to make it easier for both employers and workers to contribute to children’s accounts.
Trump Accounts are a new type of individual retirement account for children. The law generally allows annual contributions of up to $5,000, with the limit scheduled to be indexed for inflation after 2027. Employers can contribute as much as $2,500 annually toward that limit beginning in 2026.
The program also includes a one-time $1,000 federal contribution for eligible children born during the government’s pilot-program period.
For employers, Treasury’s guidance establishes several administrative requirements. Companies offering the benefit must maintain a separate written plan, provide notices and annual statements to employees, report information to the Trump Account trustee and follow procedures for verifying that contributions are being deposited into qualifying accounts.
The administration says more than 50 companies have already committed to making Trump Account contributions for employees, signaling early corporate interest in the program.
Among the companies backing the initiative are ADP, Chime, Edward Jones, Franklin Templeton, Kraken, State Street, Vanguard and Visa.
Vanguard said it plans to expand its employee benefits beginning in 2027 to allow workers to direct a $1,500 employer contribution into an eligible Trump Account. State Street and Visa have said they intend to match the government’s one-time $1,000 contribution for eligible children of employees. Chime has also announced an employee matching benefit.
Kraken has taken a broader approach, committing to sponsor a Trump Account for every child born in Wyoming in 2026.
Supporters say employer participation could significantly expand the reach of the accounts because children who don’t qualify for the government’s initial $1,000 contribution could still receive money from an employer-sponsored program.
For businesses, the accounts could also become another relatively low-cost tool for recruiting and retaining workers. Unlike traditional retirement benefits aimed primarily at employees themselves, Trump Account contributions allow employers to offer a benefit directly tied to workers’ children and their long-term financial security.
The Treasury Department and IRS have been developing regulations for Trump Accounts since Congress created them in 2025. The accounts are generally treated as traditional IRAs under the tax code, subject to special rules established specifically for the program.
The latest guidance represents another step toward making Trump Accounts a regular part of workplace benefits, with some of the country’s largest financial and payroll companies preparing systems to administer contributions.