The Treasury Department today proposed new rulemaking to establish guidance for employer-sponsored programs for contributions to Trump Accounts, including arrangements that allow employees to make pre-tax contributions to the accounts of dependents.
The tax package passed by Congress last year created a new form of individual retirement account for children under 18. More than 50 companies have committed to Trump Account contributions for their employees, according to the department. To establish a Trump Account employer contribution program, the employer must:
- Maintain a separate written plan document;
- Follow certification procedures that permit employers to rely on employees’ self-certification of the Trump Account beneficiary’s age and dependent status, but require validation that the account into which the contribution will be made is a Trump Account;
- Provide notices to employees;
- Provide annual statements to employees;
- Provide reporting to the Trump Account trustee.
The rulemaking also proposes to better define nondiscrimination rules for dependent care assistance programs.
Treasury also plans to hold a public hearing on the rulemaking on Oct. 15 at IRS headquarters. Individuals who wish to testify must submit written comments or an outline of what they plan to discuss by Sept. 25.
