§128 — Title 26 Internal Revenue Code | U.S. Code

Summary

Employers can pay money into a worker’s Trump account or into an account for the worker’s dependent, and that money does not count as the worker’s gross income if it is paid under an approved program. The tax-free amount per employee is limited to $2,500. For tax years that start after 2027, the $2,500 limit will be raised for inflation using the cost-of-living formula in section 1(f)(3), but with “calendar year 2026” substituted for “calendar year 2016.” Any increase that is not a multiple of $100 is rounded down to the next $100. A Trump account contribution program must be a separate written employer plan for employees’ benefit and meet requirements like certain parts of section 129(d).

Title 26, §128

Internal Revenue Code — Source: USLM XML via OLRC

(a)Gross income of an employee does not include amounts paid by the employer as a contribution to the Trump account of such employee or of any dependent of such employee if the amounts are paid or incurred pursuant to a program which is described in subsection (c).

(b)(1)The amount which may be excluded under subsection (a) with respect to any employee shall not exceed $2,500.

(2)(A)In the case of any taxable year beginning after 2027, the $2,500 amount in paragraph (1) shall be increased by an amount equal to—

(i)such dollar amount, multiplied by

(ii)the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins by substituting “calendar year 2026” for “calendar year 2016” in subparagraph (A)(ii) thereof.

(B)If any increase determined under subparagraph (A) is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100.

(c)For purposes of this section, a Trump account contribution program is a separate written plan of an employer for the exclusive benefit of his employees to provide contributions to the Trump accounts of such employees or dependents of such employees which meets requirements similar to the requirements of paragraphs (2), (3), (6), (7), and (8) of section 129(d).

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 128, added and amended Pub. L. 97–34, title III, §§ 301(a), 302(a), (d)(1), Aug. 13, 1981, 95 Stat. 267, 270, 274; Pub. L. 97–448, title I, §§ 103(a)(1), (5), (b), 109, Jan. 12, 1983, 96 Stat. 2374, 2375, 2391; Pub. L. 98–21, title I, §§ 121(f)(2), (g), 122(c)(3), (d), Apr. 20, 1983, 97 Stat. 84, 87; Pub. L. 98–369, div. A, title I, § 16(a), July 18, 1984, 98 Stat. 505, related to interest on certain savings certificates, prior to repeal by Pub. L. 101–508, title XI, § 11801(a)(10), Nov. 5, 1990, 104 Stat. 1388–520. For

Savings Provision

, see section 11821(b) of Pub. L. 101–508, set out as a note under section 45K of this title. Another prior section 128 was renumbered section 140 of this title.

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 119–21, title VII, § 70204(e), July 4, 2025, 139 Stat. 188, provided that: “The

Amendments

made by this section [enacting this section and section 139J, 530A, 6434, and 6659 of this title and amending section 529A, 4973, 6213, and 6693 of this title] shall apply to taxable years beginning after December 31, 2025.”

§128 Employer Contributions to Trump Accounts