Treasury Proposes Funding Rules for Trump Accounts for Children

The U.S. Treasury Department and the Internal Revenue Service proposed regulations this week to establish funding mechanisms for Trump Accounts, also known as 530A accounts. These tax-deferred investing options for children under 18 allow employees to contribute pre-tax dollars from their paychecks and permit employers to contribute up to $2,500 tax-free per worker annually.

As part of a pilot program, the Treasury Department will provide a one-time $1,000 deposit for children born between 2025 and 2028. Treasury Secretary Scott Bessent reported that over 50 companies have committed to making contributions and approximately 7 million children have already signed up for the accounts.

The proposed rules are currently subject to public comment. A hearing is scheduled for October before the regulations are finalized.