Section 128 benefit

The $2,500 Employer Trump Account Benefit

Employers can put up to $2,500 a year into your child's Trump Account — and unlike a raise, you pay no income tax on it. Here's what it's actually worth.

What is the employer benefit worth to you?

$0
Equivalent pre-tax salary per year
$0
Income tax you avoid (total)
$0
Value in account after growth*
*Growth shown over an 18-year horizon from the first contribution. The contribution is excluded from your taxable income now, but like other non-basis amounts it is taxed as ordinary income when eventually withdrawn from the account. Educational estimate, not tax advice.
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How employer Trump Account contributions work

Under new Section 128 of the tax code, an employer can adopt a written Trump Account contribution program and contribute up to $2,500 per year (indexed to inflation after 2027) to the Trump Account of an employee or of the employee's dependent child.

The three things that make this unusually good

If you're an employee

Ask HR whether a Trump Account contribution program is planned. Benefits teams began evaluating these programs after the IRS released Notice 2025-68 in December 2025. If your employer offers nothing yet, forwarding the IRS guidance is a low-effort nudge — the benefit is inexpensive for employers relative to its perceived value.

If you're an employer

A Trump Account program is a recruiting-friendly family benefit with a clear cost ceiling ($2,500/employee/year). It requires a written plan that doesn't discriminate in favor of highly compensated employees, similar in spirit to other Section 125/127-style benefit programs. Treasury has indicated further regulations are coming, so most employers are coordinating with payroll providers and benefits counsel before launching.

Curious what the full account could grow to with employer help? Run the main calculator with the employer slider turned on.

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