The IRS released initial guidance on Trump Accounts: a new child‑focused retirement savings program created under the One Big Beautiful Bill Act (OBBBA). Beginning July 4, 2026, accounts may be opened for children under 18. Those born between 2025 and 2028 will automatically receive a $1,000 federal pilot deposit when enrolled.
Employers that participate must set up a formal program, identify contributions for tax purposes, and issue required notices. The rules clarify section128 (c) provides that a “Trump account contribution program” means a separate written plan of an employer for the exclusive benefit of its employees to provide contributions to the Trump accounts of such employees or dependents (children) of such employees.
For important considerations for state and local government employers, click here to view the policy memo.