Is the Trump Account a New Employee Benefit?

Written By Kevin McKernan

Starting next July 1, 2026, IRA-like accounts can be set up with the government for a child born after December 31, 2024, and through December 31, 2028.

Under a pilot program, the Treasury will seed the account with $1,000 if an authorized person (e.g., parent) elects it.

But a contribution can also be made each year by an employer to the account of employee's dependent up to $2,500 (adjusted for inflation starting in 2027); it's called a Section 128 contribution. It's not taxable income to the employee.

This document is designed for general information only. The information presented in this document should not be construed to be formal legal or tax advice nor the formation of a lawyer/client relationship. 

For more information on this and other topics, please contact Kevin via any of the channels listed below:

📧 kevin@kmckernan.com  | 📞 718-317-5007

Kevin McKernan
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