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Pretax payroll contributions to a child's Trump Account are now within reach for parents, after the U.S. Department of the Treasury issued guidance that could also allow employers to match those contributions.
The case for treating these accounts as workplace savings vehicles just got a formal policy foundation. The complication is that this is guidance, not statute, and employer participation remains voluntary.
What Treasury's guidance establishes The Treasury Department laid out a framework under which parents could contribute to Trump Accounts through payroll deductions, much as workers funnel money into employer-sponsored retirement plans.
The pretax treatment matters: it reduces taxable income for the contributing parent, making the accounts more attractive than after-tax alternatives.
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