A Trump Account is a tax-advantaged savings account for children, created under IRS Notice 2025-68.
Employers can contribute to an employee's Trump Account, but Gusto does not currently support setting up or funding Trump Account contributions through the platform.
Employers can contribute up to $2,500 per year, per employee, to that employee's Trump Account. This limit applies per employee, not per child.
To make these contributions, an employer needs its own separate, nondiscriminatory written plan in place. This is an IRS compliance requirement, not a setting an employer can turn on. Employers should talk to a tax advisor or benefits counsel to set up this plan before contributing.
A Trump Account can only be opened by a parent or guardian, directly with the IRS.
This happens outside of Gusto and outside of the employer — neither one opens the account on the employee’s behalf. Parents and guardians can open an account using IRS Form 4547 or at trumpaccounts.gov.
Employer contributions to a Trump Account are excluded from the employee's income for federal income tax purposes. The IRS has not yet issued guidance on how these contributions are treated for Social Security, Medicare, or federal unemployment tax purposes.
If you contribute to an employee's Trump Account outside of Gusto, that contribution still needs to be reflected on their W-2 at year end. We're working on adding support for this kind of reporting before the end of the year. Until then, work with a tax advisor to make sure outside contributions are reported correctly.