The Trump administration’s new tax-advantaged investment accounts for children — dubbed Trump Accounts — are here and they are poised to become the next employee benefit trend.
Trump Accounts, also known as Section 530A accounts, were created as part of President Donald Trump’s One Big Beautiful Bill and are intended to encourage early wealth building. They provide a $1,000 pilot contribution from the U.S. Treasury into a tax-advantaged account for eligible children born in the U.S. between 2025 and 2028. Contributions for Trump accounts are expected to launch in July 2026.
Once an account is established, parents, guardians, grandparents, and others can contribute up to $5,000 per year in after-tax dollars until the year before the beneficiary turns 18. The annual contribution limit adjusts for inflation after 2027.
The accounts are expected to be popular with employees, and employers are getting in on the action.
A growing number of organizations — a list that now includes Bank of America, Charles Schwab, Sofi, JPMorgan Chase, and Visa — said they will contribute to employees’ accounts as a new perk.
“It’s a little early to start labeling these accounts as the ‘next big thing’ in employee benefits,” said Bennett Hadley, financial security solution leader at HR and benefits consulting firm Segal in New York City. “But if they’re properly supported and utilized, then they could be a compelling solution for easing the financial burden of higher education for young adults and their parents.”
According to IRS guidance, an employer may contribute to a Trump Account of an employee or the employee’s dependent up to $2,500 per year — which counts against the $5,000 annual limit — under an employer’s Trump account contribution program. The contribution will not count toward the employee’s taxable income.
In a recent poll of employers conducted by consulting firm Mercer during a webinar, nearly 16% of respondents said they plan to offer Trump Account funding options, either through pre-tax employee contributions or direct employer contributions, or are actively considering doing so. More than half said they do not currently expect to take any action related to Trump Accounts, and roughly 30% remain undecided.
“Large employers are at the forefront of helping millions of American workers achieve financial security and wellness, including planning so that their children can have a head start toward reaching their dreams,” said Andy Banducci, senior vice president for retirement and compensation policy, at The ERISA Industry Committee. Trump Accounts, he said, “represent an exciting new tool that many Americans will consider to help make those dreams a reality.”
Recognition that ‘Lack of Savings Is an Issue’
Employers are leaning on Trump Account contributions as a way to help improve the financial picture for their employees — and their employees’ dependents.
Charles Schwab CEO Rick Wurster said in a statement that by matching the government’s contribution for Schwab employees’ children, the firm is helping “more families take an early, confident step toward building long-term financial security.”
JPMorganChase CEO Jamie Dimon said in a statement that Trump Account contributions are the financial services firm’s latest commitment to financial well-being efforts for its employees. “JPMorganChase has demonstrated a long-term commitment to the financial health and well-being of all of our employees and their families around the world, including more than 190,000 here in the United States,” he said. “By matching this contribution, we’re making it easier for them to start saving early, invest wisely, and plan for their family’s financial future.”
Employers’ willingness to pledge matching contributions is a “clear recognition that people’s lack of savings is an issue, and it’s an issue that they’re willing to put money toward solving,” Hadley said.
The new accounts come as financial situations remain precarious for many employees: Just 47% of Americans indicate they have sufficient liquidity or access to funds to cover a $1,000 emergency expense, according to Bankrate. And financial stress has risen, with roughly one-third of Americans saying their personal finances will worsen in 2026, according to Bankrate’s recent Financial Outlook Survey — the highest level of pessimism since 2018.
Trump Accounts are a way to help, Hadley said: “Outside of retirement plans, employers have very few tax-advantaged options to supplement employees’ savings,” he said. “The prospect of doing so through these accounts excites benefits leaders.”
Employer Considerations
As more employers mull the decision to contribute to Trump Accounts for their employees’ children, there are pros and cons that employers should take into consideration, experts said.
There are several obvious advantages, Hadley said. Not only can contributions to the accounts boost savings, but they can be a boon for talent, as well. “Meaningfully funded accounts will be very valuable to both kids and their parents, and of course, it doesn't hurt that funds should also lessen their financial responsibility as their child ages into adulthood,” he said. “Employers who provide this funding will have an edge when it comes to attracting and retaining talent.”
But employers still should keep in mind the potential negative consequences of contributing to these accounts — notably excluding some of the workforce.
“Inherently, offering this as a benefit would exclude childless employees,” Hadley said. “Employers would need to have a broader program of financial benefits to avoid the appearance of favoritism, and employers would need to be prepared to communicate how that program addresses the varied financial needs of their workforce.”
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