Treasury says parents could fund Trump Accounts directly from their paycheck

The US Treasury Department issued guidance that would let parents make pretax contributions to a child's Trump Account directly from their own paycheck. The accounts are part of the administration's push to encourage savings and investment for children. Officials said the accounts, established under earlier legislation, offer a tax-advantaged way for families to build a nest egg from birth.

The new guidance also opens the door for employers to match employee contributions to the accounts, giving the program a structure similar to a workplace retirement plan. Officials said companies could offer the match as part of broader benefits packages, much as many employers already match 401(k) contributions.

Analysts said further guidance is expected to clarify the scope of contributions and their tax treatment. The program is intended to build a savings cushion that children can draw on once they reach adulthood. Financial advisers said the paycheck-deduction option could make it easier for working families to contribute consistently rather than relying on occasional lump-sum deposits.