08.11.26

Parents Could Put Pre-Tax Paycheck Money Into Trump Accounts, With Employers Matching

by: Jessica Dickler

The U.S. Treasury and the Internal Revenue Service proposed rules allowing employers to contribute up to $2,500 annually to employees’ Trump Accounts for dependent children, while employees could also direct pretax paycheck contributions into the accounts. The tax-deferred accounts are available to U.S. children under 18, with annual contributions capped at $5,000 and a $1,000 government seed contribution for eligible children born from 2025 through 2028. More than 50 companies have pledged contributions, although employer adoption has so far been limited. The proposed regulations remain subject to public comment and an October hearing before they can be finalized.

Read the full article on CNBC