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A new type of savings plan, known as Trump Accounts, is set to launch for children born between 2025 and 2028. ​ While this program is making headlines, it also presents a unique opportunity for employers to offer contributions as part of their employee benefits package. ​ However, this innovative benefit raises important questions about fairness, compliance, and plan design. ​

What Are Trump Accounts?

Trump Accounts were established under the “One Big Beautiful Bill Act,” signed into law on July 4, 2025. ​ Here’s how they work:

  • Federal Contribution: Every eligible child will receive a $1,000 federal contribution at birth. ​
  • Additional Contributions: Parents or others can add up to $5,000 annually on an after-tax basis. ​
  • Employer Contributions: Employers can contribute up to $2,500 per year per child, within the $5,000 annual limit. ​
  • Tax Benefits: Contributions grow tax-deferred, and the account automatically converts into a retirement account when the child turns 18. ​

While the law is enacted, regulatory details from the IRS and Treasury are still being finalized. ​ These include operational guidelines, eligibility specifics, and rules for accessing and using funds. ​ Trump Accounts are expected to become operational by July 4, 2026. ​

Why Should Employers Care?

Employer contributions to Trump Accounts could set your business apart in attracting and retaining talent, especially younger workers or those starting families. ​ However, integrating this benefit into your overall strategy requires careful consideration. ​

Key Considerations for Employers ​

  1. A Differentiating Benefit: ​ Offering contributions to Trump Accounts may appeal to employees with young families, helping you stand out in recruitment and retention efforts. ​
  2. Risk of Disparity: ​ Only employees with eligible children benefit, which could create a “haves vs. have-nots” dynamic within your workforce. ​
  3. Plan Design and Compliance: ​ IRS and Treasury rules will clarify how contributions are processed, capped, and reported. ​ Employers must decide whether contributions are discretionary or part of a formal benefit plan. ​
  4. Clear Communication: ​ Employees will need clear information about who qualifies, how contributions work, and what other benefits are available for those who don’t qualify. ​

Action Steps for Employers ​

  • Monitor Regulatory Updates: Stay informed as IRS and Treasury finalize rules on employer contributions. ​
  • Balance Equity Across Benefits: Pair Trump Account contributions with other options that support all employees, such as 401(k) matches, emergency savings programs, or student loan assistance. ​
  • Integrate Into Financial Wellness: Position Trump Accounts as part of a broader financial wellness package, including money management education programs. ​
  • Consult Your Advisor: Work with a financial advisor to ensure contributions are structured fairly and comply with regulations. ​

Conclusion

Trump Accounts offer a unique opportunity for employers to differentiate themselves in the competitive job market. ​ However, success depends on integrating this benefit fairly and transparently into your overall strategy. ​

At Align Advisors, we’re here to help you navigate these changes and design a benefits package that works for your business and employees. ​ Contact us today to learn more about Trump Accounts and other financial wellness solutions. ​

Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. ​ 480 New Holland Ave, Suite 6204 ​ | Lancaster, PA 17602 ​ | Phone: 717.740.2630 ​ | www.alignretire.com