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Last week, the U.S. Department of the Treasury (Treasury) and the Internal Revenue Service (IRS) jointly released important information surrounding employee savings and retirement plans. Specifically, the two agencies both issued proposed regulations on one topic, while providing guidance on the other. In general, the guidance involves rollovers to and from retirement plans while the proposed regulations apply to the Trump Administration’s latest savings program, known as “Trump Accounts.” Earlier this month, the two agencies also released guidance expanding employer tax credits for providing paid family and medical leave.
What Is the History of the Trump Accounts Program?
On July 4th, 2025, President Donald J. Trump signed the “One Big Beautiful Bill Act” into law. Among the number of changes made to the federal tax code under this law was the creation of a custodial savings account for children to which parents, employers, and others can contribute.
Markedly, these savings accounts are called “Trump Accounts” and are considered individual retirement accounts (IRAs) for children with Social Security numbers who’ve not reached 18. Additionally, children born between January 1st, 2025, and December 31st, 2028, who are United States citizens, will receive a $1,000 contribution from the Treasury under a pilot program.
Overview of the Trump Accounts Program
In detail, beginning this year, employers may make tax-free contributions to Trump Accounts along with contributions made by the child, parent, and others. Currently, the employer contribution limit is $2,500 per year, and employers must notify employees of the program. Lastly, employers must also provide annual statements of any contributions made.
Finally, as mentioned earlier, employers, parents, and children themselves can contribute to the new IRAs. However, total contributions are capped at $5,000 per year/per child. Also, the new rules state that once the child reaches age 18, the child must have taxable income to be eligible to contribute. Those additional contributions then become subject to the rules generally applicable to IRAs.
Trump Accounts Savings and Retirement Plans Proposed Regulations
On August 11th, 2026, the Treasury and the IRS issued proposed regulations for employers who choose to participate in the Trump Accounts savings and retirement plans.
Basically, the recent release outlines the requirements for this program by requiring that the savings and retirement plans 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.
The proposed regulations also clarify how nondiscrimination requirements apply to Trump Accounts. Chiefly, eligibility to participate must not discriminate in favor of highly compensated employees or their dependents.
What Other Guidance was Issued by the Two Agencies?
One day after the Trump Accounts proposed regulations were released, the Treasury and the IRS provided guidance to simplify and standardize the rollover process between retirement plans. Markedly, the agencies issued sample forms for direct rollovers to or from a retirement plan, as required under the SECURE 2.0 Act.
For this purpose, Notice 2026-49 includes sample forms and proposed rollover procedures and protocols that aim to simplify and standardize the rollover process for both participants and plan sponsors.
Overall, the Treasury and IRS released the following bulleted points when it comes to employers using the information in Notice 2026-49 and applying it to their own retirement plans:
- Scope: The information applies to rollovers between retirement plans or between a retirement plan and an individual retirement account (IRA), but not to IRA-to-IRA transfers.
- Design: The sample forms are designed to protect participants’ personal identifying information and minimize participants’ burden.
- Optional use: Use of the sample forms and proposed procedures is optional for plan sponsors.
Employer Takeaways
In conclusion, employers who choose to offer savings and retirement plans to their workers must comply with and stay abreast of any updates or changes to the recently released proposed regulations or latest guidance. For example, a public hearing on the proposed Trump Accounts regulations has been scheduled for October 15th, 2026. Both the Treasury and the IRS are requesting comments on all aspects of the proposed regulations by September 25th, 2026. The proposed regulations include complete instructions for submitting those comments. Additionally, the two agencies are requesting comments from employers on their retirement plans rollover guidance. Comments for these regulations are due by October 23rd, 2026, and that Notice includes submission instructions.
To assist employers, WorkWise Compliance now offers a selection of monthly and annual compliance plans to help businesses address their legal obligations under workplace laws, including virtual consulting services on important labor law compliance topics. These services can help affected businesses address current and proposed regulations on proper labor practices.
