Treasury proposes tax-free $2,500 deposits into children’s 'Trump accounts'

The Treasury Department proposed guidance would let parents contribute up to $2,500 per year tax-free to a child’s Trump account via payroll, with employers also able to contribute up to $2,500 annually for each child (counting toward a $5,000 total annual limit). Each child born between 2025 and 2028 could receive $1,000 in federal seed money for investments. If an employer doesn’t contribute, the employee can still contribute $2,500 pretax. The rule is open for public comments through Sept. 25 with a public hearing on Oct. 15, and more than 50 companies have pledged to contribute.