Treasury Proposes Tax Rules for Trump Account Savings Plans

The U.S. Treasury Department and the Internal Revenue Service issued proposed regulations on August 11, 2026, to establish funding mechanisms for Trump Accounts, also known as 530A accounts. Created under the One Big Beautiful Bill Act of 2025, these tax-deferred investing options for children under 18 allow employees to contribute pre-tax dollars via payroll deductions and permit employers to contribute up to $2,500 tax-free per worker annually.

To qualify, employers must maintain a separate written plan and adhere to nondiscrimination standards to ensure benefits do not favor highly compensated employees. While these contributions are exempt from federal income tax, they remain subject to Social Security, Medicare, and federal unemployment taxes. The program includes a pilot initiative providing a one-time $1,000 federal seed deposit for U.S. citizens born between 2025 and 2028. Treasury Secretary Scott Bessent reported that 7 million children have already enrolled and over 50 companies have committed to participating.

Private sector support includes a $6.25 billion pledge from the Michael and Susan Dell Foundation to provide $250 to 25 million children. However, some critics and analysts warn the structure may exacerbate wealth inequality by disproportionately benefiting high-income families with greater access to employer-sponsored programs.

The proposed rules are open for public comment until September 25, 2026. A public hearing is scheduled for October 15, 2026, at the Internal Revenue Service headquarters in Washington, D.C.