The US Treasury Department and Internal Revenue Service (IRS) have proposed new rules that would allow employers to contribute up to $2,500 a year to Trump Accounts for their employees’ dependent children without the contributions being counted as taxable income. The proposed regulations would also allow employees to make pre-tax payroll contributions to their children’s accounts.
The guidance comes as the Trump Account program, also known as 530A accounts and later referred to as Invest America accounts, seeks to expand participation and encourage long-term savings for American children.
