§128 Employer Contributions to Trump Accounts

Summary

Employer payments to an employee’s Trump account, or to a dependent’s Trump account, do not count as the employee’s income if the payments come from a qualifying plan. The tax-free amount for each employee cannot be more than $2,500. For tax years that begin after 2027, the $2,500 limit will be increased for inflation using the cost-of-living rule in section 1(f)(3), but with “calendar year 2026” used instead of “calendar year 2016.” If that increase is not a multiple of $100, it is rounded down to the nearest $100. A “Trump account contribution program” means a separate written employer plan for employees (and their dependents) that meets rules like certain parts of section 129(d).