An employer may put in up to $2,500 a year tax free
What the document says“Gross income of an employee does not include amounts paid by the employer as a contribution to the Trump account of such employee or of any dependent of such employee”
The section adds a new section 128 to the Internal Revenue Code of 1986 leaving out of an employee's gross income what an employer pays into the Trump account of the employee or a dependent, under a written program that meets requirements similar to paragraphs (2), (3), (6), (7) and (8) of section 129(d). No more than $2,500 may be excluded for an employee, rising from a taxable year after 2027 by a cost of living adjustment measured from calendar year 2026 and rounded down to the nearest $100.
What the document actually says“Gross income of an employee does not include amounts paid by the employer as a contribution to the Trump account of such employee or of any dependent of such employee”
What an employer pays into the account is not counted as pay. That holds for the worker's own account. It also holds for a dependent's account.
No more than $2,500 may be left out each year. The employer must have a written plan. The cap grows with prices after 2027.
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