WASHINGTON, D.C. — The Treasury Department and Internal Revenue Service proposed rules allowing employers to contribute as much as $2,500 annually on a tax-free basis to Trump Accounts for workers or their dependents, establishing a regulatory framework for companies seeking to add the new accounts to employee benefit programs.
The proposed regulations require employers offering the benefit to establish a separate written plan maintained exclusively for employees and providing contributions to Trump Accounts belonging to workers or their dependents.
Employer programs would also be subject to nondiscrimination requirements intended to prevent benefits from being disproportionately directed toward highly compensated employees or their dependents.
The proposal additionally clarifies how nondiscrimination rules apply to dependent care assistance programs. In general, both eligibility and the contributions or benefits provided through the programs may not favor highly compensated employees or their dependents.
“Today’s 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,” IRS Chief Executive Officer Frank J. Bisignano stated.
The rules remain proposed and are subject to public comment before being finalized.
Treasury and the IRS are accepting comments on the proposal through Sept. 25. A public hearing is scheduled for Oct. 15, with requests to speak and outlines of proposed testimony due by Oct. 13.
The regulations accompany implementation of Trump Accounts for children. Parents, guardians and other authorized individuals can use an IRS Individual Online Account to file Form 4547 and elect to establish an account for a child with a Social Security number before the calendar year in which the child turns 18.
Children who are U.S. citizens and were born from 2025 through 2028 may also qualify for a $1,000 federal pilot-program contribution. An eligible parent or other authorized individual can elect that contribution when completing Form 4547.
Additional information about the accounts is available at trumpaccounts.gov, while the IRS provides information on the underlying legislation through its Working Families Tax Cuts Provisions resources at IRS.gov.
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