US Treasury Proposes Rules for Employer Contributions to Trump Accounts

The US Treasury Department and Internal Revenue Service have proposed rules governing employer contributions to Trump Accounts, outlining how businesses can offer the new benefit while complying with tax and non-discrimination requirements.

Under the proposal, employers could contribute up to 2,500 US dollars a year, tax-free, to Trump Accounts held by employees or their dependents, according to the IRS.

The rules would require employers to establish a separate written plan exclusively for employees’ benefit, provide for contributions to employees’ accounts or those of their dependents, and meet other conditions, including non-discrimination requirements.

The proposal also clarifies rules for employer-sponsored dependent care assistance programmes. In general, eligibility and the contributions or benefits provided under both types of programmes must not discriminate in favour of highly compensated employees or their dependents.

“This guidance will help employers that want to make a tax-free contribution of up to $2,500 per year to the Trump Account of an employee or their dependents,” said Frank J. Bisignano, chief executive officer of the IRS.

The Treasury and the IRS have invited public comments on the proposed regulations. The deadline for comments was September 25, 2026, while requests to speak at a public hearing and outlines of proposed topics were due by October 13.

The proposed rules set out a framework for employers seeking to establish contribution programmes, but the announcement does not establish that every employer must offer the benefit.

Source: FSX Business News