Businesses of any size can support employees who open Trump Accounts for their children.

As the federal government rolls out investment accounts for kids, many big employers will provide matching funds. When the government seeds new Trump Accounts with $1,000, these employers will add another $1,000. Even if no other deposit gets made, an account that starts with $2,000 and earns a 5% annual return would grow to $4,900 over 18 years. For small businesses that want to expand their benefits by supporting employees with Trump Accounts, here’s a rundown on the program.

What’s a Trump Account?

Trump Accounts are an opt-in investment program for kids under age 18 who are U.S. citizens and have a Social Security number. Funds are to be invested in exchange-traded funds or mutual funds that track an index of primarily U.S. equities. For 2026, up to $5,000 may be contributed. Future year’s maximums will be indexed for inflation.

The accounts are comparable to IRAs used for retirement savings. Pre-tax dollars are invested and can’t be tapped until the account holder reaches a certain age. With Trump Accounts no withdrawals are allowed before age 18. After reaching adulthood, the account holder can use funds for qualified expenses like getting an education, starting a business or buying a home. Taxes based on the account holder’s tax rate will be owed for the year withdrawals are made.

As part of a pilot program, the U.S. Treasury Department will seed accounts with $1,000 for children born between January 1, 2025, and December 31, 2028.

Like all market investing, there’s no guarantee of growth and there’s a risk of losing funds.

Opting in to the program

Parents or guardians will have to enroll their children in the program. When enrollment opens, sign-up details will be at trumpaccounts.gov. The earliest families can contribute is July 5, 2026. When accounts are opened, an app will show investment details and performance.

Employers can contribute

Up to $5,000 per child per year can be deposited in Trump Accounts. The funds can come from family, friends, charities, local and state governments and employers.

Starting July 5, 2026, employers may contribute up to $2,500 per year per employee and their contributions are tax deductible. If an employee has more than one child, the employer’s contribution can be split among the children’s accounts. Any employer contribution counts toward the $5,000 per account annual limit. KPM advises employers that Trump Account Contribution Programs “must be maintained under a separate written plan.”

Even if an employer doesn’t wish to make contributions, they can support employees by administering a salary reduction plan to make automatic contributions to Trump Accounts.

Parent and guardian contributions will not count toward the employee’s taxable income.

 

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