Before the OBBB, advocates had been pushing for the creation of “Invest America” accounts, which were described as investment vehicles designed to give every child a financial stake in the markets from birth, with the goal of fostering early financial literacy, long-term asset growth, and a shared investment in the nation’s economic future.
The OBBB formalizes this concept under the new name “Trump Accounts.” Starting in 2026, families can contribute up to $5,000 per year per child, and children born between 2025 and 2028 will receive a $1,000 federal seed contribution. These accounts function much like IRAs, with tax-deferred investment growth. The OBBB also allows employers to offer Trump Accounts as a benefit, contributing up to $2,500 annually (indexed) to accounts for employees or their dependents on a tax-free basis. To offer this benefit, employers must adopt a written plan and comply with nondiscrimination rules such as those governing dependent care FSAs.
Employer Action Items
Consider offering Trump Accounts as a tax-free benefit to employees starting in 2026. The Trump Accounts will require written plan documentation, compliance with nondiscrimination rules, and employee communications to implement the up to $2,500 annual employer contribution opportunity to employees.