Set up a Trump Account in QuickBooks Payroll

by Intuit •

•

Updated 8/5/2026 03:16

Starting July 4, 2026, Trump Accounts can begin to receive contributions. A Trump Account is a tax-advantaged retirement savings account established under the One Big Beautiful Bill for eligible children under age 18.

Use this article to set up the Trump Account company contribution item that must report on Form W-2. You may also track employee deductions to Trump Accounts, up to the applicable annual limit. If the employee will have after-tax deductions to a Trump Account, see Step 2 for how to set up after-tax Trump Account deductions.

Things to know:

The annual maximum for company contributions and pre-tax employee deductions combined is $2500 per employee, regardless of how many qualifying children they have.
The combined total of all Trump Account contributions from all allowable sources cannot exceed $5,000 per child's account per year.
Track total contributions carefully to avoid exceeding the limit.

QuickBooks Workforce Payroll

Step 1: Set up the initial Trump Account deduction and contribution item

This item is to be used for the Company Contribution and any allowable pre-tax employee deductions under IRC §128.

Note: Special rules apply to pre-tax employee deductions for Trump Accounts. Consult a tax advisor or your 125 plan benefits administrator to ensure your company qualifies for employee pretax deductions to Trump Accounts.

Go to All apps , then Payroll, then Employees (Take me there).
Select your employee.
From Deductions & contributions, select Start or Edit.
Select + Add deduction/contribution.
From the Deduction/contribution type dropdown, select Retirement plans.
From the Type dropdown, select Trump Account.
Enter a name in Description (appears on paycheck). For example, Trump Account..
Under Employee deduction, select how to calculate the deduction (Flat amount, Percent of gross pay, or Per hour worked) and enter the amount or percentage.
Under Company contribution, select the calculation method and enter the amount per paycheck and annual maximum your company wishes to contribute.
- If no annual maximum is entered, then the full allowable $2500 will be enforced.
Select Save, then Done.

Utilize this specific item for the company contribution as well as any allowable pre-tax employee deductions, capped at the $2,500 pre-tax maximum. For any additional employee deductions to a Trump Account, you must process these as after-tax deductions. Follow the instructions in Step 2 to configure these as Other After-Tax Deductions.

Step 2: Set up after-tax Trump Account deductions

The embedded Trump Account item in QuickBooks Online supports only the company contribution, plus any allowable pre-tax employee deduction, capped at the $2500 pre-tax maximum. If you wish to deduct additional amounts, use Other After-Tax Deduction.

Go to All apps , then Payroll, then Employees (Take me there).
Select your employee.
From Deductions & contributions, select Start or Edit.
Select + Add deduction/contribution.
From the Deduction/contribution type dropdown, select Other Deduction.
From the Type dropdown, select Other after-tax deductions.
In Description (appears on paycheck), enter a name that identifies the item. For example, Trump Account – After-Tax or Trump Account - [Child’s Name].
Select the calculation method and enter the amount or percentage.
Enter an Annual maximum for the deduction.
1. The total annual maximum, including any pre-tax deductions or company contributions created in Step 1 is $5000 per qualifying child for tax years 2026 and 2027 and will need to be manually adjusted if increased in the future.
Select Save, then Done.

Edit or remove a Trump Account deduction

Go to All apps , then Payroll, then Employees (Take me there).
Select your employee.
From Deductions & contributions, select Edit.
Select Edit ✎ next to the deduction you want to modify and make your updates. Or select the Trash bin icon to remove it.
Select Save, then Done.

QuickBooks Desktop Payroll (Enhanced & Assisted)

Step 1: Set up the Trump Account deduction item

Go to Lists, then Payroll Item List.
Select Payroll Item ▼ dropdown, then New.
Select Custom Setup, then Next.
Select Deduction, then Next.
Enter a name for the deduction (for example, Trump Account or Trump Account – [Child's Name]), then select Next.
Select the name of the plan administrator or add it, enter the account number, then select Next.
For Tax tracking type, select:
- Premium Only/125 for a pre-tax deduction, or
- None for an after-tax deduction. Select Next.
Select Next twice. If you selected None, select Net pay in the Gross vs. net window, then select Next.
Leave the Default rate and limit fields blank, then select Finish.
- The total annual maximum, including any pre-tax deductions or company contributions created in Step 1 is $5000 per qualifying child for tax years 2026 and 2027 and will need to be manually adjusted if increased in the future.

Step 2: Add the item to the employee profile

Go to Employees, then Employee Center.
Select your employee.
Select ✎, then select Payroll Info.
Under Additions, Deductions, and Company Contributions, add the Trump Account deduction item.
Enter the amount per period and an annual limit.
1. The total annual maximum, including any pre-tax deductions or company contributions created in Step 1 is $5000 per qualifying child for tax years 2026 and 2027 and will need to be manually adjusted if increased in the future.
Select OK.

Note: For more information about managing payroll deductions in QuickBooks Desktop, see Set up, change, or delete employee-paid payroll deductions.

Company contribution in QuickBooks Desktop

The Trump Account company contribution item for QuickBooks Desktop Payroll will be available later in 2026. In the meantime, you can track company contribution amounts outside of payroll. Once the item is available, the total contribution amount can be recorded either on a paycheck or via a liability adjustment to ensure proper placement on Form W-2.

Annual contribution limits

	Per employee
Employee deduction	Up to $5,000 per child's account
Pre-Tax contributions Combined employer and employee	Up to $2,500 aggregate across all dependents
Combined annual maximum	Up to $5,000 per child's account

W-2 reporting

Employee deductions are not reported separately on Form W-2.
Company contributions are reported in Box 12, code TA.