The Treasury Department and the Internal Revenue Service have issued a slate of proposed regulations that would permit employers to make tax-free contributions of up to $2,500 annually to the Trump Account of an employee's child. The guidance, released this week, aims to give financial advisors and employers a clearer framework for incorporating the federal savings program into workplace benefits.
Under the proposals, employers could contribute directly to a Trump Account—formally known as a 530A account—for employees or their dependents. The rules also spell out nondiscrimination requirements, ensuring that eligibility, contributions, and benefits do not favor highly compensated employees or their dependents over the broader workforce. "The proposed regulations will provide a framework for businesses establishing a Trump Account contribution program, a new benefit for American working families," said IRS Chief Executive Officer Frank J. Bisignano in a statement.
The guidance also opens a second funding channel: employees could make pretax contributions to a child's Trump Account directly from their paychecks, potentially paired with an employer match. That dual structure gives advisors two levers to discuss with working parents, as noted by industry observers. To qualify, a program must be a separate written plan for the exclusive benefit of employees, provide for contributions to Trump Accounts, and satisfy various requirements, including the nondiscrimination tests.
Corporate interest is already building. As of Tuesday, more than 50 companies have committed to Trump Account contributions, according to CNBC, with some offering to match the government's $1,000 seed money. Publicly committed firms include Robinhood, Schwab, BlackRock, Bank of New York, and Franklin Templeton. Melissa Elbert, a partner of wealth solutions at Aon, told CNBC that the clearer framework should widen adoption: "We saw early adoptions, and I think many more are considering it, and this guidance is going to help."
Christopher Gandy, president of the National Association of Insurance and Financial Advisors, said the proposed regulations are helpful to members who work with employers with cafeteria plans and establishing savings vehicles for children. "By minimizing compliance burdens for employers, the proposed regulations make widespread adoption of Trump account contribution programs, including programs that permit pre-tax contributions through a cafeteria plan, more likely," Gandy said in an emailed statement. He added that the notes on comparison of after-tax future value will be helpful for advisors discussing options with parents. "Pre-tax contributions to Trump accounts will not be universally better for families than contributions to section 529 accounts, but they are competitive," he said.
Despite the enthusiasm, employer appetite has so far trailed the political rollout. A Mercer poll of nearly 350 U.S. employers in April found that only about 4% of companies expected to implement a Trump Account contribution program in 2026 or 2027, while two-thirds had decided not to make contributions at all. The proposed regulations may shift that calculus, but advisors remain cautious.
Judson Meinhart, director of financial planning at Modera Wealth Management's national advisory practice, said the tone among advisors has been measured rather than enthusiastic, since Trump Accounts don't have an absolute edge over 529 plans, custodial accounts, or Roth IRAs. He pointed to unresolved technical questions, such as how pre-18 contributions, or basis, will be tracked once the account converts to IRA rules, and whether any conversion path to a Roth IRA will exist. These issues were flagged before the accounts launched on July 4.
The Treasury and IRS have scheduled a public hearing on the proposal for Oct. 15. Oral comments are due by Oct. 13, and written comments will be accepted through Sept. 25. Advisors and employers will be watching closely, as the final rules could shape how Trump Accounts fit into family savings strategies. For more on related developments, see Treasury's Saver's Match comment period and small business interest in Trump Accounts.
