WASHINGTON (dpa-AFX) - The U.S. Department of the Treasury has said that it will allow employers to contribute directly to Trump Accounts up to $2,500 tax-free each year for employees' dependents and give employees the option to contribute pre-tax dollars directly to those accounts.
This was the highlight of guidance that the Treasury announced Tuesday addressing employer-sponsored programs for contributions to Trump Accounts, including arrangements that allow employees to make pre-tax contributions to the Trump Accounts of their dependents. The guidance also accommodates employers that have committed to, and those that are interested in, contributing directly to an employee's dependent's Trump Account by providing flexible and non-restrictive rules.
'Trump Accounts are giving American families a new way to build wealth from day one,' said Treasury Secretary Scott Bessent. '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.'
The Working Families Tax Cuts allows employees to make pre-tax contributions through an employer cafeteria plan to their dependents' Trump Accounts. It also allows certain employer contributions to Trump Accounts to be excluded from an employee's gross income. Employers may contribute to the Trump Account of an employee's dependents.
To establish a Trump Account employer contribution program, the employer must maintain a separate written plan document. The employers are also required to follow certification procedures that permit them to rely on employees' self-certification of the Trump Account beneficiary's age and dependent status, but require validation that the account into which the contribution will be made is a Trump Account; provide notices to employees, annual statements to employees, and provide reporting to the Trump Account trustee.
So far, more than 50 companies have committed to Trump Account contributions for their employees.
'We are pleased to make Trump Accounts available to U.S. employees at Visa along with a company match of the government's one-time $1,000 contribution,' said Kelly Tullier, Vice Chair, Chief People and Corporate Affairs Officer, Visa. 'Today's announcement by the Treasury Department provides important guidance that will support the rollout of these accounts across the country, and we congratulate them for taking this next step.'
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
