The latest proposed rule on Trump Accounts (sometimes called 530A accounts) was released by the U.S. Treasury Department and IRS on August 11, 2026. It expands how families and employers can contribute to these child savings accounts.
Key proposed changes
- Pre-tax payroll contributions: Parents could contribute money directly from their paychecks into their children’s Trump Accounts on a pre-tax basis, similar to how some health savings and flexible spending arrangements work. This would reduce the parent’s taxable income.
- Employer contributions: Employers could contribute up to $2,500 per year to the Trump Accounts of employees’ dependent children, with those contributions excluded from the employee’s gross income.
- Payroll integration: The proposal provides guidance on how employers can establish payroll systems to fund these accounts.
- Not yet final: The regulations are currently proposed rules. Treasury and the IRS are accepting public comments and have scheduled a hearing before issuing final regulations.
Background on Trump Accounts
Under current law:
- Children born between 2025 and 2028 may receive a one-time $1,000 federal contribution if eligible.
- Families and others can contribute up to $5,000 annually to a child’s account.
- The accounts are designed as long-term, tax-deferred investment accounts for children.
What it means for families
The practical effect of the proposed rule is that Trump Accounts would become more attractive because parents could potentially receive an upfront tax benefit through payroll deductions, and some employers could provide matching or direct contributions.
In short: the newest proposal would allow pre-tax paycheck contributions and tax-favored employer contributions to children’s Trump Accounts, making them function more like workplace benefit programs.
Next steps
At this time, our teams are actively reviewing the proposed regulations and evaluating system requirements needed to support Trump Account contributions within the isolved platform.
Because the regulations have not yet been finalized, payroll processing requirements, reporting obligations, and administrative procedures may change before implementation.
We understand many employers are interested in offering this benefit to employees and their families. Our goal is to provide a compliant, streamlined solution once regulatory guidance is finalized. We will continue monitoring Treasury and IRS developments and will keep you informed of any significant updates.