Trump Accounts: Employer Guide

Trump Accounts introduce a new employer-sponsored benefit option that allows eligible contributions to an employee's or dependent's account on a tax-advantaged basis for eligible individuals under age 18. Beginning July 4, 2026, employers may contribute to a Trump Account for an employee or an employee's dependent through a qualified employer-sponsored contribution program. Employer contributions to Trump Accounts that meet IRS requirements may be excluded from the employee's taxable income. Employers choosing to offer this benefit should ensure they have a compliant contribution program in place, understand the associated reporting requirements, and correctly report contributions on Form W-2 using Box 12 Code TA.

What Employers Need to Know

Employers are not required to offer Trump Account contributions. Participation is voluntary and requires the establishment of a formal employer contribution program.

Under current IRS guidance:

• Employer Trump Account contribution limit is $2,500 per employee per year to the account of an employee or the employee's dependent.
• Qualified employer contributions are generally excluded from the employee's taxable income.
• Employer contributions count toward the account beneficiary's annual contribution limit.
• Contributions may only be made to a valid Trump Account established for an eligible individual.

Tax Forms Impacted

Form W-2

Employers that make qualified Trump Account contributions must report those amounts in W-2 Box 12 Code TA - Employer contributions made through a qualified Trump Account contribution program.

Form 1099-R

The IRS has added reporting fields to support Trump Account-related distributions. Box 7c is used for certain Trump Account distribution reporting.

Form 5498-QA

Form 5498-QA includes reporting for certain rollover activity involving Trump Accounts and ABLE accounts.

Requirements for Employers Offering a Trump Account Program

Employers wishing to provide Trump Account contributions must establish and maintain a qualifying program. IRS guidance indicates that employers generally must:

• Maintain a written plan document.
• Provide employee communications regarding program availability and terms.
• Verify that contributions are made to eligible Trump Accounts.
• Maintain required records.
• Comply with nondiscrimination requirements applicable to the program.

Additional Treasury and IRS guidance continues to evolve, and employers should monitor future regulatory updates.

Employee Questions Employers May Receive

What is a Trump Account?

A Trump Account is a tax-favored savings account for eligible individuals under age 18. Funds must generally remain invested until the beneficiary reaches adulthood, at which point the account transitions to treatment similar to a traditional IRA.

Can an employer contribute to an employee child's Trump Account?

Yes. If you offer a qualified Trump Account contribution program, contributions may be made to the Trump Account of an employee’s dependent child, subject to IRS limits and program rules.

Are employer contributions taxable?

Qualified employer contributions made through an approved program are generally excluded from the employee's taxable income, up to statutory limits. Qualified employer contributions to a Trump Account are reported on the employee's Form W‑2, Box 12, using Code TA.

Do employees need to take action before contributions can be made?

Yes. An eligible Trump Account must be established and available to receive contributions before employer contributions can be processed. Beginning October 1, 2026, the U.S. Treasury implemented an automatic enrollment process that establishes Trump Accounts for most eligible children under age 18 who have a valid Social Security number. An employee may already have a Trump Account established for their child, even if they did not manually open one. However, automatically created accounts typically must be claimed by the parent or guardian before they can receive contributions from employers, family members, or other third parties.

Best Practices for Employers

To prepare for Trump Account reporting requirements, employers should:

• Review payroll system support for W-2 Box 12 Code TA reporting.
• Establish procedures for collecting and validating employee participation information.
• Update year-end tax reporting processes.
• Coordinate with payroll providers and benefit administrators as needed.
• Monitor Treasury and IRS guidance for future compliance requirements.

Updated: 10/29/2026