Should You Offer Trump Accounts as an Employee Benefit? Here’s What Employers Need to Know

Trump Accounts as an employee benefit

With the recent release of IRS Notice 2025-68, the federal government has unveiled its first official guidance on Trump Accounts, a new type of retirement account designed to help families build long-term savings for eligible children.

While these accounts were created with families in mind, Trump Accounts open the door for employers to contribute, making it an intriguing new benefit option for companies looking to support employees’ financial wellness and long-term planning goals.

Here’s what employers need to know now and what steps to consider as the program moves forward.

What are Trump Accounts?

Established under the Working Families Tax Cuts Act, Trump Accounts are a new kind of individual retirement account (IRA) created for eligible children born between 2025 and 2028 with a valid Social Security number. Contributions can grow over time through investment earnings, and the account automatically converts to a traditional IRA when the child reaches age 18.

The federal government will automatically contribute $1,000 to each eligible child’s Trump Account once parents or guardians opt into the program.

Additionally, a recent $6.25 billion charitable commitment from the Dell family will provide an extra $250 to the first 25 million eligible children under age 10 living in areas where the median income is below $150,000.

Why employers should pay attention

For employers, Trump Accounts may present an opportunity to enhance compensation packages in a competitive hiring environment, especially for employees with young families.

Under the IRS’s current guidance:

• Employers may contribute up to $2,500 per year to an employee’s Trump Account election.
• Contributions are in addition to the family’s annual $5,000 limit.
• Employer contributions are expected to begin after July 4, 2026, once the program is fully implemented.

This contribution structure allows companies to support the long-term financial health of employee families without adding complexity to traditional retirement plans.

How the accounts work

Eligibility

• Available to U.S. citizens with a valid Social Security number
• Eligible children must be born between 2025 and 2028

How to Elect

• Parents or guardians must file Form 4547, Trump Account Election(s), to enroll in the federal pilot program.

Investments & Withdrawals

• Funds must be invested in a qualified mutual fund or ETF
• No withdrawals allowed until the child turns 18
• Transfers allowed: Trustee-to-trustee transfers can be made to the family’s brokerage of choice

Once the account is converted to a traditional IRA, standard IRA rules apply for distributions, contributions, and tax reporting.

Considerations for employers

Adding Trump Account contributions as a workplace benefit may help:

• Attract and retain talent, particularly among younger workers and working parents
• Reinforce your company’s commitment to financial wellness and family-first values
• Offer tax-advantaged support for employees without the administrative burden of new retirement plan structures

However, there are several items to monitor:

• Final rules and implementation dates may shift as the IRS continues to develop proposed regulations
• Contributions will need to be properly tracked, reported, and aligned with IRS rules and caps
• Employees will need education and guidance on how to enroll and benefit from employer contributions

What’s next

The IRS is currently accepting comments on Trump Account implementation through February 20, 2026, and will issue further guidance and proposed regulations in the coming year.

Employers interested in adopting Trump Account contributions as part of their benefits package should begin evaluating their internal payroll and benefits systems to ensure they can properly track contributions, develop clear internal communications, and assess tax implications for both the business and employees.

Partner with Keiter to explore your options

At Keiter, we help businesses navigate the complexities of emerging tax-advantaged savings programs. Our tax advisors are closely monitoring updates related to Trump Accounts and can help you understand eligibility and contribution rules and evaluate the tax benefits of offering Trump Account support.

Keiter will continue to monitor updates as additional guidance is released. Questions? Contact your Keiter Opportunity Advisor.

Additional Resources:

Sources:

• IRS Newsroom – Treasury, IRS Issue Guidance on Trump Accounts
• White House Release – Landmark Dell Gift Supercharges Trump Accounts