Treasury, IRS Issue Proposed Regulations on Employer Contributions to Trump Accounts

The Department of the Treasury and the Internal Revenue Service (IRS) recently issued proposed regulations providing guidance to employers that choose to make contributions to Trump Accounts for employees or their dependents. The proposed regulations also clarify nondiscrimination requirements for employers offering Trump Account contribution programs and dependent care assistance programs.

"Today's guidance will help employers that want to make a tax-free contribution of up to $2,500 per year to the Trump Account of an employee or their dependents," said IRS Chief Executive Officer Frank Bisignano. "The proposed regulations will provide a framework for businesses establishing a Trump Account contribution program, a new benefit for American working families."

The proposed regulations outline requirements for employers that wish to maintain one of these contribution programs. This contribution program generally must:

• Be a separate written plan of an employer for the exclusive benefit of employees;
• Provide for contributions to the Trump Accounts of employees or their dependents;
• Satisfy various requirements, including nondiscrimination requirements.

Please select this link to read the complete press release from the IRS.