Parents would be able to contribute up to $2,500 per year tax-free to their “Trump accounts” through their paycheck under a proposed rule from the Treasury Department.
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The proposal would expand the savings options for the newly created accounts, through which any child born during President Donald Trump’s second term can receive $1,000 in federal seed money for investments.
Any child under 18 can have an account, but they won’t receive the seed money unless they were born after Jan. 1, 2025, and before Dec. 31, 2028.
The program also allows employers to contribute up to $2,500 annually into their employees’ children’s accounts, which counts toward a $5,000 annual limit for contributions by employers, parents, guardians and others. More than 50 companies have committed to contributing to their employees’ accounts, according to Treasury.
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If their employer does not contribute, an employee can make a $2,500 pretax contribution via payroll.
The rule is expected to be finalized after a submission period for public comments ending Sept. 25 and a public hearing on Oct. 15.
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