Employers considering how to leverage the newly created Trump Accounts in their benefits design have more factors to consider, as proposed rulemaking was announced last week.
On Friday, the Treasury Department and IRS provided initial guidance for the pilot of the Trump Accounts, which were created under last year’s One Big Beautiful Bill Act to serve like individual retirement accounts for eligible children, with employers able to match employee contributions. In a pilot program, the government will provide a seed of $1,000 per account.
In the proposed rules, the agencies outlined eligibility, which includes American citizenship, the issuance of a Social Security number and a guarantee that the account holder has not enrolled in a Trump account yet.
In separate proposed rulemaking for the pilot program featuring the $1,000 seed money, the guidance includes the stipulation that children are born between 2025 and 2028. The government deposit, the agencies said, cannot be used to reduce tax or other debt. Eligible guardians will have until Dec. 31 of the year the child turns 17 to claim the $1,000 contribution.
To open the account, eligible guardians will be able to submit an online application or file a Form 4547, which can accompany a tax return.
The Department of the Treasury would formally create the initial account after receiving the election, with the adult who made the request typically serving as the responsible party managing the account on the child’s behalf.
Trump Accounts are eligible for up to $5,000 in annual contributions, which can include up to $2,500 from employers. This round of regulations notes that more details are “expected to be proposed in the future” regarding the mechanics of investing in the accounts.
The proposed regulations are posted on the Federal Register, with a 30-day comment period for the pilot program and a 60-day period for the rules relating to the account creation.
Melissa Elbert, partner, wealth solutions at Aon, recently told HR Executive that many of the employers her firm is talking to about the Trump Accounts are using this waiting period before more details emerge to strategize for how possible investments will fit into their broader wellness and benefits strategies.
“They want to use these to refresh their financial wellbeing communication—connecting to the financial stresses employees have today, and linking to the importance of retirement savings and benefits available across generations,” Elbert says.
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