On August 11, 2026, the Treasury Department and the IRS issued proposed regulations for employers that choose to contribute to Trump Accounts for employees or their dependents.
The announcement (IR-2026-90) also explains proposed nondiscrimination requirements for employer Trump Account contribution programs and dependent care assistance programs.
What the IRS Announced
Under the proposed regulations, an employer could make tax-free contributions of up to $2,500 per year to the Trump Account of an employee or the employee’s dependent. Participation is optional for employers.
An employer that chooses to offer the benefit would generally need a separate written plan maintained for employees’ exclusive benefit. The plan would provide contributions to eligible Trump Accounts and would need to satisfy applicable requirements, including nondiscrimination rules.
Proposed Plan Requirements
The IRS release says an employer Trump Account contribution program generally must:
- Be established as a separate written plan for the exclusive benefit of employees
- Provide for contributions to Trump Accounts belonging to employees or their dependents
- Meet applicable requirements, including rules intended to prevent discrimination in favor of highly compensated employees or their dependents
Because the regulations are proposed, employers considering this benefit should review the final rules and implementation guidance before adopting a program.
Public Comments and Hearing Dates
Treasury and the IRS requested comments on the proposed regulations by September 25, 2026. A public hearing is scheduled for October 15, 2026, and requests to speak and outlines of proposed topics are due by October 13, 2026.
Submission instructions and the complete proposed framework are available in the proposed regulations linked below.
What Families Should Know
Parents, guardians, and other authorized individuals can use an IRS Individual Online Account to submit Form 4547 and elect to open a Trump Account for an eligible child with a Social Security number. The election must be made before the calendar year in which the child turns 18.
An authorized individual can request the federal $1,000 pilot contribution for a child anticipated to be their qualifying child for the election year if the child was born after December 31, 2024, and before January 1, 2029; is a U.S. citizen; has a valid Social Security number; and has not had a prior pilot-program contribution election processed.
Why It Matters for Small Business Owners
Small businesses evaluating this benefit should account for plan documentation, eligibility, contribution administration, and nondiscrimination requirements. The proposed rules may change before they are finalized, so business owners should avoid treating the proposal as final compliance guidance.
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This article provides general information, not tax, legal, or investment advice. These regulations are proposed and may change. Confirm current requirements on IRS.gov and in the final regulations.