Trump Accounts: What Employers Need to Know About 530A for Employees Before July 4th, 2026

As the 250th anniversary of our nation’s independence approaches this summer, expect—alongside the festivities and fireworks—plenty of publicity around the newest employee benefit. Trump Accounts are scheduled to launch on July 4, 2026, and many HR professionals, payroll directors, and benefit specialists are still figuring out how this new savings vehicle works.

We recently hosted a webinar to walk through the nuts and bolts of these accounts and how they might fit within a strong employer benefit stack. Here are the takeaways.

What Are Trump Accounts? 

Trump Accounts, also known as 530A accounts, are custodial savings vehicles held in the name of children under the age of 18. Established by the One Big Beautiful Bill Act, their purpose is to support the financial future of children by seeding them with government funds and providing tax-advantaged ways for employers and workers to fund them.

They are tax-advantaged in two ways. First, qualifying contributions from both employers and employees are excludable from income, meaning no payroll or income taxes. Second, as the accounts grow, any taxes on capital gains or dividends are deferred. 

How Do 530A Accounts Work?

Parents can elect to open an account today by filing IRS Form 4547 as part of their tax return. Chime^TM members have already been enrolling through our in-app tax filing feature. Parents can also register through TrumpAccounts.gov when it goes live on or around July 4, 2026.

$1,000 will be deposited tax-free from the U.S. Treasury for all children born from 2025 through 2028. For children not born in those years, accounts can still be opened with all the tax advantages of employee and employer funding. They just won’t get the initial government funds.

Employers can fund up to $2,500, pre-tax, per employee's family, per year. Parents can fund up to $5,000 per year, aggregated across their children’s accounts.

When funded as a payroll deduction, these employee contributions are also pre-tax and even exempted from FICA payroll taxes—much like an HSA under IRC Section 125. If a company doesn’t offer this option, employees can still fund the accounts on their own but with post-tax dollars. Hence, there is a powerful incentive to enable payroll deductions, given the tax benefit to both employers and employees.

When the account beneficiary turns 18 years old, the Trump Account converts into a standard IRA. If the child, who is now technically an adult, wants to access funds, the account will be subject to normal IRA distribution rules, including those for qualified distributions like college and first-time home expenses.

The IRS is expected to issue further rules and guidance later this spring. Funding can begin after July 4, 2026. 

3 Ways to Enable Trump Accounts as an Employee Benefit 

1. Offer tax-free payroll deduction. For employers who want to assist employees with 530A accounts, they can first enable employee contributions via a payroll deduction. This offers a lot of value to workers, as it gives them the ability to put pre-tax funds into the account. Plus, it saves employers the cost of the FICA taxes on those contributions, up to 7.65%.

2. Offer a one time employer 530A account contribution. Second, employers can make a one-time contribution at birth. A number of companies, including Chime, have announced they will match the Treasury $1,000 contribution. If you’re trying to scope out employee eligibility, about 3% of households have a child each year. (That’s the average, so will vary from employer to employer.)

3. Offer ongoing employer match to 530A account. And third, employers can participate on an ongoing basis. That is a longer-term commitment, so we can expect companies to take time in assessing this option. About 23% of working families have children under the age of 18, so the typical workforce might have around that share of eligible employees.

Mercer ran an informal poll in a February 2026 webinar and found that 16% of employer respondents have already committed to participate in some form. Another 30% are in the process of exploring, while just over half do not plan on participating.

Why Trump Accounts Could Be an Impactful 2026 Benefit

The purpose of these accounts is to give the next generation a compounding share in the ownership economy. There is a growing concern that more and more people are struggling to build wealth or even basic savings. Take home ownership as an example. For many decades, young workers bought their first home by age 30 and saw that asset compound over their career. But since 2010, the age of first-time homebuyers has risen from 30 to 40, and more than half of non-home owners believe they will never be able to afford one.

Or consider retirement accounts. The 401(k) has been around 45 years and is now offered by more than 8 out of 10 large employers. A staggering $33.4 trillion of wealth is now held by defined contribution plans and IRA accounts. But lower income and frontline workers often don’t participate. And when they do, their cash-out and loan rates are significantly higher than average. Half of hourly workers making less than $50,000 cash out at separation, triggering penalties and taxes.

Yet, even if they’re struggling to make ends meet, most families are even more concerned about their children. Three-quarters of adults think the next generation will struggle even more financially.

Source: Pew Research

Trump Accounts have the potential to fill a gap by boosting low income participation through upfront government funding and protecting the assets from early withdrawals.

Where 530A Accounts Fit in Your Benefits Stack

530A accounts sit at the intersection of family and savings benefits. There may be a lower barrier for eligible employee enrollment because of the $1,000 funding from the U.S. government. And because birth rates are higher for lower income families, there is an opportunity to promote savings for those with the highest need.

For comparison, cost to the employer could be significantly lower than paid family leave. And since funds cannot be withdrawn, balances are designed to grow steadily over time. Because parents often place their children’s needs ahead of their own, they may even value these accounts more than their own 401(k). Adding a Trump Account alongside a 401(k) creates an opportunity to enhance employee loyalty, at a relatively lower cost.

Trump Accounts and Financial Wellness: The Bigger Picture

According to the Financial Health Network, 7 out of 10 workers are not financially healthy. They may struggle with some combination of poor credit, low savings, and simply paying bills on time. In response, employers are offering their workforces essential financial tools as part of their benefits packages. 

Increasingly, those employers are adopting a single, comprehensive platform dedicated to financial well-being. This holistic consolidation helps streamline HR and payroll operations, simplify employee access, and power workforce financial progress.

Trump Accounts vs. 401(k): What Employers Should Consider

Senators Cory Booker (D-NJ) and Ted Cruz (R-TX) have sent letters to the CEOs of Fortune 1000 companies, urging them to support Trump Accounts as “a transformative tool for building long-term financial security.” And they compare this new benefit to the 401(k). In fact, the 530A may complement the 401(k), depending on the benefits program. Here’s why:

• Custodial accounts eliminate the risk of loans and early withdrawals that have been rising in 401(k)s.

• Funding the accounts at such a young beneficiary age unleashes compounding returns—the eighth wonder of the world.

• The government is seeding and promoting this program.

• Employer costs may be considerably lower. The combined cap for employer and employee funding is $5,000, versus $72,000 for the 401(k).

• And finally, we can expect even greater participation from lower-income families given the Treasury's free funding.
  

Want to Learn More?

Watch the webinar in its entirety.

At Chime Workplace^TM,  we help employers power financial progress for their teams. Schedule a call for a free assessment of your workforce’s financial health and whether Trump Accounts might fit into your financial wellness benefits. 

¹ Age determined at the end of year in which account is opened.

² $1,000 can be claimed anytime before 18th birthday.

³ Cost of living adjustment increases cap after 2027.

⁴  The $5,000 parental cap is reduced by any employer contributions. For example, if an employer funds $1,000 for an employee’s children, then the parental cap is reduced by $1,000 from $5,000 to $4,000.