From CNBC · Kate Dore, CFP®, EA,Jessica Dickler · · 2m
Trump Accounts close Dec. 31, and your employer counts toward the cap
Company deposits and paycheck deferrals share the $5,000 limit, so check your benefits before you top up a child's account.
In brief
Company deposits and paycheck deferrals share the $5,000 limit, so check your benefits before you top up a child's account. Before you max out a Trump Account for 2026, add up what your employer puts in, because going over the $5,000 limit costs 6% a year plus all earnings on the excess. Originally reported by CNBC.
Dec. 31 is the cutoff
Families have until Dec. 31 to make 2026 Trump Account contributions. Employers offering the benefit through direct deposits or paycheck deferrals face the same date.
Overfunding gets expensive
Company deposits and your own deferrals both count toward the yearly cap. Go over and you owe 6% a year on the excess until it's removed, plus 100% of its earnings when withdrawn.
“You want to make sure you don't overfund it”
What counts toward $5,000
The 2026 limit covers deposits from family, companies and others. The $1,000 Treasury seed for kids born 2025 to 2028 and gifts like Dell's $250 grants sit outside it.
The rules aren't final yet
Treasury and the IRS released proposed regulations in August. Public comment is open, and an October hearing comes before the rules are locked in.
Two ways employers can pay
A company can deposit up to $2,500 per employee, tax free for the worker but still hit by payroll taxes. Or it can run pre-tax paycheck deferrals into the account.
Few employers are signing up
Officials pitch it as a cheap perk for hiring and keeping staff. But a Mercer poll of about 350 employers found only 4% planned a contribution program in 2026 or 2027.
Self-employed can't pay their own kids
Sole proprietors, partners and owners of more than 2% of an S corporation can't treat deposits to their own children's accounts as tax-free employer contributions.
“The answer is no.”
Plans must treat staff fairly
Employers need a written plan, employee notices and reporting. Non-discrimination rules also block the tax break if contributions favor owners and top earners.
“It's very similar to any other type of employer plan”
The one thing
Before you max out a Trump Account for 2026, add up what your employer puts in, because going over the $5,000 limit costs 6% a year plus all earnings on the excess.
