Employer contributions to Trump Accounts: what to ask HR

By Aaron Houston · Last checked 2026-10-26 against IRS and Treasury sources

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The basics

An employer can contribute to the Trump Account of an employee or an employee's dependent, and up to $2,500 a year is excluded from the employee's income. The limit is subject to cost-of-living adjustments after 2027 (IRS: Notice 2025-68).

The contributions must be made under a separate written plan of the employer (a "Trump account contribution program"), with requirements similar to dependent care assistance programs on discrimination, eligibility, notification and statements (IRS: Notice 2025-68).
The $2,500 is per employee, not per child. An employee with two or more children with accounts can receive at most $2,500 in total from the employer for 2026 (IRS: Notice 2025-68, Q&A I-1).
Employer money counts toward the child's $5,000 annual limit (IRS: Instructions for Form 4547) and does not create basis, so it is taxed as income when withdrawn later (IRS: Notice 2025-68).
The employer must tell the account trustee that the payment is a section 128 employer contribution (IRS: Notice 2025-68, Q&A I-2).

Can it come out of my paycheck?

In most cases, yes. A program can be offered through salary reduction under a section 125 cafeteria plan when the money goes to the account of the employee's dependent, but not when it goes to the employee's own Trump Account (IRS: Notice 2025-68, Q&A I-3).

The account must be claimed first

An automatically created account cannot accept employer money. A parent or guardian has to claim and activate the account first; only then can family or employer contributions go in (IRS: TD 10056, IRB 2026-44). See who can claim.

Rules still being finalized

Treasury and the IRS issued proposed regulations on employer contributions on Aug 11, 2026 (IRS: IR-2026-90, IRS: Internal Revenue Bulletin 2026-37). Proposed rules are not final and can change.

Questions to ask HR

Does the company have a written Trump account contribution program? Employers are not required to offer one.
Is it an employer-paid contribution, a salary reduction through the cafeteria plan, or both?
How much will be contributed, and how is the $2,500 per-employee limit handled if I have more than one child?
Which child's account will receive the money, and what information do you need from me (for example, proof the account is claimed and activated)?
When are contributions paid, and how will they appear on my pay stub?
If my spouse's employer also contributes, how should we coordinate so the child's account stays under $5,000 for the year?

Unconfirmed: We did not find final official guidance on how employer contributions are shown on Form W-2 or on how limits are coordinated when both parents' employers contribute. Ask HR and check irs.gov for updates.

Not tax or legal advice. Talk to your benefits team or a tax professional about your situation.

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