Tax Tip #299

U.S. citizens born between December 31, 2024 and January 1, 2029 could receive a $1,000 government deposit into a Trump account (see Tax Tip #257 for more information). 

Employers may contribute up to $2,500 per year (adjusted for inflation after 2027) to a Trump account for the benefit of an employee or the employee's child. In addition, employers may offer participation through a salary reduction arrangement under a Section 125 cafeteria plan, allowing employees to contribute their own pretax salary into the account. The employer's contribution is not considered to be income. However, any employer contribution or employee salary reduction contribution counts against the total $5,000 cumulative contribution limit for the year.

If you have any questions, feel free to reach out to a team member.