Trump Accounts: What every employer needs to know

A new tax advantaged savings account for children opens for contributions on July 4, 2026. Created under the One Big Beautiful Bill Act of 2025, Section 530A IRA accounts (Trump Accounts) give children a long term financial head start and give employers a meaningful new benefit to offer their teams. Below, we will cover everything you need to know.

If you’re a QuickBooks Workforce Payroll customer and you want to jump straight to the set up instructions, go here.

What is a Section 530A account?

A Section 530A account is a new type of tax advantaged investment account for children under 18. Think of it as a beginner IRA: contributions grow on the child’s behalf from birth through adulthood. The account is owned by the child but managed by a parent, guardian, or other authorized adult until the child turns 18.

Withdrawals are generally not permitted during the “growth period,” meaning from account opening through the year before the child turns 18. After that, standard traditional IRA rules apply, including the 10% early withdrawal penalty before age 59½ unless a qualifying exception applies (such as higher education expenses, a first home purchase, or certain medical expenses).

Who is eligible?

To open an account, the child must be a U.S. citizen under 18 with a valid Social Security number. Only one account per child is allowed. A parent, legal guardian, adult sibling, or grandparent can open an account by filing IRS Form 4547. Starting in the middle of 2026, accounts can also be opened online at TrumpAccounts.gov.

Contribution limits

The annual contribution limit per child is $5,000 for 2026 and 2027, with inflation adjustments beginning in 2028. Contributions can come from family members, friends, the child themselves, employers, and the federal government.

As an employer, you can contribute up to $2,500 per employee per year to the Section 530A accounts of your employees’ children. Key points:

Setting up an employer contribution program

Offering Section 530A contributions is entirely voluntary; no employer is required to participate. For businesses looking to attract and retain talent, it can be a meaningful addition to your total rewards package.

To make employer contributions, you will need to establish a formal contribution program. Current IRS guidance requires:

• • Your plan meets nondiscrimination, eligibility, notification, and statement requirements, similar to Section 129 Dependent Care Assistance Programs
• • When making a contribution, you notify the account trustee that it is a Section 128 employer contribution excludable from the employee’s gross income
• • The account trustee must be a bank or IRS approved nonbank custodian

If you plan to offer contributions, work with your legal or benefits advisor to ensure your plan satisfies these requirements before the program launches.

“Contributing $5,000 annually during a child’s first 18 years delivers the same long term impact as saving double that amount over a career spanning more than 40 years. That is the power of starting early.”

— Section 530A account design principle

QuickBooks Workforce Payroll setup instructions

The ability to set up employee deductions and employer contributions for Trump Accounts is now available in QuickBooks Workforce Payroll.

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

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

1. 1 Go to All apps, then Payroll, then Employees.
2. 2 Select your employee.
3. 3 From Deductions & contributions, select Start or Edit.
4. 4 Select + Add deduction/contribution.
5. 5 From the Deduction/contribution type dropdown, select Retirement plans.
6. 6 From the Type dropdown, select Trump Account.
7. 7 Enter a name in Description (appears on paycheck). For example, Trump Account.
8. 8 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.
9. 9 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 $2,500 will be enforced.
10. 10 Select Save, then Done.

Utilize this specific item for the employer 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 employer contribution, plus any allowable pre-tax employee deduction, capped at the $2,500 pre-tax maximum. If you wish to deduct additional amounts, use Other After-Tax Deduction.

1. 1 Go to All apps, then Payroll, then Employees.
2. 2 Select your employee.
3. 3 From Deductions & contributions, select Start or Edit.
4. 4 Select + Add deduction/contribution.
5. 5 From the Deduction/contribution type dropdown, select Other Deduction.
6. 6 From the Type dropdown, select Other after-tax deductions.
7. 7 In Description (appears on paycheck), enter a name that identifies the item. For example, Trump Account – After-Tax or Trump Account – [Child’s Name].
8. 8 Select the calculation method and enter the amount or percentage.
9. 9 Enter an Annual maximum for the deduction.
   • • The total annual maximum, including any pre-tax deductions or employer contributions created in Step 1, is $5,000 per qualifying child for tax years 2026 and 2027 and will need to be manually adjusted if increased in the future.
10. 10 Select Save, then Done.

QuickBooks Desktop Payroll

QuickBooks Desktop Payroll customers will also be able to track and manage Section 530A accounts, with support rolling out later in 2026. We will share a specific timeline as soon as it is confirmed.

Actions to take with your team

• → Share this article with your HR team and employees so they can set up accounts for their children.
• → Decide whether you want to offer employer contributions of up to $2,500 per employee as part of your benefits package.
• → Remind employees with children born between January 1, 2025 and December 31, 2028 to file IRS Form 4547 to claim the free $1,000 government seed contribution.
• → Consult your legal or benefits advisor to confirm your plan meets nondiscrimination requirements.
• → Consult your legal or benefits advisor to confirm whether you have a Section 125 Cafeteria Plan that will allow you to offer pretax employee deductions up to the allowable limit.

Key dates

For more information, visit the official homepage for Trump Retirement Accounts. Bookmark this page and check back for Desktop Payroll support later in 2026.