Treasury Clears Way For Employers To Fund Workers’ Trump Accounts
By CU Today Staff —
WASHINGTON—The Treasury Department has issued guidance allowing employers to contribute up to $2,500 tax-free annually to Trump Accounts for employees’ dependents, while also permitting workers to make pre-tax contributions through employer cafeteria plans.
Treasury said the rules are designed to give employers flexibility in establishing the programs, with more than 50 companies already committed to making contributions.
“Trump Accounts are giving American families a new way to build wealth from day one,” Treasury Secretary Scott Bessent 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.”
Employers establishing programs will be required to maintain a written plan, provide employee notices and annual statements, follow certification procedures and report contributions to the Trump Account trustee.
“This guidance will provide a framework for businesses establishing a Trump Account employer contribution program, a new benefit for American working families,” IRS Chief Executive Officer Frank J. Bisignano said. “We have worked with more than 50 of the largest employers in the country to prepare them for Trump Accounts and are proud to share their outlook on this new option.”
Treasury said employer contributions can also benefit children who are not eligible for the initial $1,000 federal contribution.
Originally reported by CU Today.