IRS Proposes Rules for Employer Trump Account Contributions

Treasury and the IRS have issued proposed regulations outlining requirements for employer Trump Account contribution programs.

Trump Accounts are a new type of individual retirement account for certain individuals under age 18. Since July 4, 2026, employers have been permitted to contribute up to $2,500 a year to a Trump Account for an employee or the employee’s dependent.

What the Proposed Regulations Would Require

If the rule is finalized, a Trump Account contribution program would have to:

• Be established under a separate written employer plan for the exclusive benefit of employees, and
• Meet nondiscrimination requirements covering eligibility, contributions and benefits.

The proposed regulations also would require employers to:

• Notify eligible employees about the program 
• Verify that contributions go to a valid Trump Account – employers may rely on employee self-certification of age and dependent status, but not on certification alone to confirm the account itself, which must be verified through a trustee, payroll processor or other service provider 
• Identify each Section 128 contribution to the account trustee when it is transmitted, and 
• Send the trustee a corrective notice within 21 calendar days if a contribution is later determined not to qualify as a Section 128 contribution.

Comments on the proposal are due Sept. 25, 2026. 

Payroll takeaway: If your organization plans to make employer contributions for 2026, confirm they’re being made under a Section 128 Trump Account contribution program. Keep the proposed requirements in mind as you establish or review the program.

More info: Read the Proposed Regulations