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How Employers Can Contribute $2,500 To Trump Accounts

How Employers Can Contribute $2,500 To Trump Accounts

Author: The College Investor July 20, 2026 Duration: 10:58
The College Investor Audio Show
BusinessEducationInvesting

Employer contributions to Trump Accounts become legal on July 4, 2026 — one year to the day after the One Big Beautiful Bill Act created the new children's savings accounts. For small business owners, the launch opens a question worth real money: can your business fund your own kids' accounts with pre-tax dollars?

The answer appears to be yes for many owners, but the mechanics matter. The tax break runs through new Internal Revenue Code Section 128, which lets an employer contribute up to $2,500 per year to the Trump Account of an employee or an employee's dependent without the amount counting as taxable income to the employee.

For a solopreneur who is also an employee of their own company, that can mean a business deduction on one side and no income tax on the other — a combination that is hard to find elsewhere in the code.

But the provision comes with paperwork requirements, contribution caps, and several unresolved questions the IRS has not yet answered. Here is what the rules require, where the opportunity sits for owner-operators, and the mistakes that could undo the benefit.


Hosted by Robert Farrington, founder of The College Investor and a recognized Millennial Money Expert, The College Investor Audio Show transforms the website's most valuable insights into a daily, conversational format. This podcast directly tackles the financial hurdles unique to a generation, moving beyond theory into practical, actionable strategies. Each episode focuses on the core pillars of modern financial health: systematically eliminating student loan debt, demystifying the fundamentals of investing, and creating actionable paths to increase your income. The goal is clear: to guide you from a place of debt management to one of confident wealth building. You'll hear straightforward advice on navigating repayment plans, understanding where and how to start investing even with limited capital, and exploring side hustles or career moves that make a real difference. It’s a resource for anyone feeling stalled by their loans and eager to lay a solid foundation for their future. Tune in for a no-nonsense take on millennial money, where complex topics are broken down into manageable steps you can apply immediately.
Author: Language: English Episodes: 50

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