Trump Accounts Have Dec. 31 Deadline, Employers Can Contribute Up To $2,500 Per Employee
The deadline to make contributions to Trump Accounts (also known as 530A accounts) for the year is December 31, 2026. These tax-deferred investment vehicles are designed to help children build wealth and have a total contribution limit of $5,000 per child annually, including up to $2,500 from employers. Employers can contribute directly or allow employees to defer part of their paycheck into the accounts. However, these contributions count toward the annual cap, so individuals are advised not to overfund and risk penalties such as a 6% fee on excess amounts each year until corrected. Experts emphasize that workers should review employer benefits before making full-year deposits. The Treasury Department has also provided $1,000 in seed money for children born between 2025 and 2028, which is separate from the contribution limit. While regulations are still being finalized after public comment periods, early guidance suggests that Trump Accounts could become a valuable tool for small businesses to attract talent.
Topics: contribution limits employee benefits tax-deferred investing Trump Account