§128 Employer contributions to Trump accounts

Summary

Employers can pay money into a "Trump account" for an employee or the employee’s dependent and that money is not counted as the employee’s taxable income if the payments come from a qualifying employer program. The tax-free amount is limited to $2,500 per employee each year. For tax years starting after 2027, the $2,500 limit will be increased for cost‑of‑living using the rule in section 1(f)(3) but substituting "calendar year 2026" for "calendar year 2016"; any increase not a multiple of $100 is rounded down to the next $100. A qualifying program must be a separate written employer plan for employees’ exclusive benefit and must meet requirements like certain parts of section 129(d).