IRS Proposes Rules for Employer-Funded Trump Accounts and Dependent Care Plans

The Internal Revenue Service has published a proposed rule to establish the regulatory framework for employer contributions to “Trump Accounts.” These are new tax-advantaged accounts for children, a provision included in the One Big Beautiful Bill Act. The proposal outlines how employers can contribute to these accounts on behalf of their employees’ children and the specific compliance requirements involved.

Why it matters: This is a significant administrative update for HR and payroll departments, but it is not a new law. The underlying authority for Trump Accounts and the existing framework for dependent care plans already exist in statute. This rule provides the specific operational details—such as reporting forms, deadlines, and testing methods—that employers need to comply with the law without facing penalties. For most individuals, the day-to-day impact is minimal until the final rule is issued and implemented.

Who it affects

• Human resources and payroll departments at companies that offer dependent care assistance or plan to offer Trump Account contributions.

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This action was taken by the Internal Revenue Service and published in the Federal Register; readers should consult the full text of the proposed rule for specific compliance details and comment deadlines.

Agency: Treasury Department, Internal Revenue Service
Source: Federal Register — read the official document