Is the Trump account a new employee benefit?

Starting next July 1, 2026, IRA-like accounts can be set up with the government for a child born after December 31, 2024, and through December 31, 2028. Under a pilot program, the Treasury will seed the account with $1,000 if an authorized person (e.g., parent) elects it. But a contribution can also be made each year by an employer to the account of employee’s dependent up to $2,500 (adjusted for inflation starting in 2027); it’s called a Section 128 contribution. It’s not taxable income to the employee. A draft of instructions to Form 4547 contain details, and proposed regulations are forthcoming. #IdeaoftheDay