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More than 6.5 million families have signed up for Trump Accounts, a new savings program for U.S. children launched on July 4, Fortune reports.
While the accounts have attracted many families, only about 55 companies have announced plans to contribute on behalf of employees’ children, including Bank of America, Chipotle, Dell and Uber.
Under the One Big Beautiful Bill Act, employers can contribute up to $2,500 per year tax-free to these accounts, which are available to U.S. citizens under age 18 and convert into individual retirement accounts when the child turns 18. However, many employers are waiting for more Treasury Department guidance before offering contributions.
The Department of Labor has clarified that employer contributions will not be subject to ERISA rules, meaning companies won’t face the same fiduciary obligations required for retirement plans.
Experts say this clarification may not significantly increase employer participation because companies still need answers on key operational issues, such as where contributions should be sent and how payroll deductions should be handled.
Employers are also seeking guidance on nondiscrimination rules and how to manage contributions across different financial institutions. Analysts note that the program’s impact on employee benefits will depend on future regulations, whether the pilot program is extended, and whether employers can prioritize these contributions alongside healthcare, retirement plans and other benefits.
