Q: Can my employer contribute to my child’s “Trump Account”?
A: Yes, and this is one of the most overlooked features of these accounts.
Unlike contributions you make yourself – which are after-tax – employer contributions are pretax to you, similar to how a company might contribute to a retirement plan.
Here’s how it works:
Employers can contribute up to $2,500 per year. This limit is per employee (not per child). The total employer contribution is capped annually regardless of how many children you have.
There is a total annual contribution cap of $5,000. This includes employer and personal contributions combined.
Contributions don’t begin until July 4, 2026. Accounts may be opened earlier, but funding – including employer contributions – starts from this date.
State tax treatment may differ. While these contributions are tax-free federally, states such as Massachusetts may still tax them.
Your employer must offer a formal program. Contributions can be made only through a structured Trump Account Contribution Program – they’re not automatic.
The bottom line: If your employer offers this benefit, it can be one of the most tax-efficient ways to invest in your child’s future. It’s worth asking whether a Trump Account contribution program is available to you.
Send questions about your taxes to Vincent Hicks, a CPA based in Cambridge who has more than 20 years of experience, at vincent@hickscpasolutions.com. You can call Hicks at (859) 553-0788.
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