What Are Trump Accounts?
Your paycheck may soon have a new place to go: a Trump Account for your child. These accounts, also called 530A accounts, are open to any American child younger than 18 who has a Social Security number.
Here is how the basics work:
- The government adds a one-time $1,000 deposit for children born between 2025 and 2028.
- Parents, guardians, grandparents and other individuals can add up to $5,000 per child each year.
- Contributions can continue until the year before the child turns 18.
What the New Rules Change
The Treasury Department and IRS released proposed rules Monday that cover employer and employee contributions.
Treasury Secretary Scott Bessent said the rules "are giving American families a new way to build wealth from day one." He also said: "Today, Treasury is publishing guidance that will help families grow Trump Accounts by allowing employers to contribute up to $2,500 tax-free each year for employees' dependents and giving employees the option to contribute pre-tax dollars directly to those accounts."
Those employer dollars count toward the $5,000 per-child limit. A workplace contribution could cover a large part of that yearly maximum on its own.
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The draft also makes clear that employer money is not a bonus on top of the family limit. It counts as part of the same $5,000 per-child ceiling.
A $2,500 employer contribution would leave room for $2,500 more from family and others in that year.
Early Adoption, and Some Hesitation
This is not starting from zero. Some are offering to match the government's $1,000 deposit.
Businesses are moving more slowly. Mercer surveyed nearly 350 U.S. employers in April.
Only roughly 4% anticipate starting such a program in 2026 or 2027. Two-thirds decided against making contributions.
Melissa Elbert, a wealth solutions partner at Aon, said the new rules give employers a clearer picture of the administrative and compliance requirements, though some questions remain. "We saw early adoptions, and I think many more are considering it, and this guidance is going to help."
What It Means for Your Family's Money
The rules are still proposed, not final. The Treasury and IRS are taking public comments and have scheduled a hearing in October before finalizing anything.
That hearing gives businesses and families a chance to weigh in before the rules become final. If your employer decides to participate, the setup is straightforward.
Part of your paycheck could slide into your child's account before income tax is taken out, and any employer match is extra money on top. If your employer sits it out, the account still works the way it did before.
The early numbers show real interest: 7 million children already have accounts, and over 50 companies have raised their hands. Whether the next wave shows up in paychecks depends on how many employers decide the paperwork is worth it.
For a parent, the payoff is that a child could turn 18 with money already built up.
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