Washington, D.C. (October 22, 2026) – The American Institute of CPAs (AICPA) has submitted recommendations to both the Treasury and the Internal Revenue Service (IRS) regarding new proposed regulations for employer contributions to Trump accounts. The letter’s recommendations highlight areas in the proposed regulations that are administratively burdensome, making it potentially difficult for employers to comply.
The proposed regulations address employer-sponsored Trump account contribution programs established under Internal Revenue Code (IRC) Section 128, allowing employers to make tax-free contributions to an employee’s or employee’s dependent’s Trump account, subject to annual limits of $2,500 per employee in 2026 and 2027, with inflation adjustments thereafter. Similar to dependent care assistance programs under Section 129, these employer programs must be maintained through a separate written plan and comply with employee notification, reporting and nondiscrimination requirements.
The proposed rules outline standards for plan documentation, employee certifications, account verification, trustee communications, contribution limits, cafeteria plan salary-reduction arrangements, correction procedures for administrative and nondiscrimination failures, and nondiscrimination testing requirements under both Sections 128 and 129.
In response to the proposed regulations, the AICPA provided recommendations in the following areas:
Develop simplified compliance methods for Trump account contribution programs
Determine a reasonable method for account verification and contribution transmission
Develop a standard process for communicating with Trump account trustees
Develop an administrable trustee selection process
Increase flexibility in the nondiscrimination rules
Clarify payroll reporting for nondiscrimination failures
Coordinate with Individual Retirement Account Employee Plans Compliance Resolution System program
Extend the deadline for 2026 Trump account contribution to 2027
Provide transition relief
“The AICPA’s letter addresses practical compliance challenges to sections that could make Trump account programs difficult to implement. The goal of our recommendations is to reduce uncertainty and administrative burdens for employers and tax practitioners,” says Michelle Zou, Senior Manager, AICPA Tax Policy & Advocacy. “Clearer, standardized rules would reduce administrative complexity, make errors easier to correct and help encourage broader employer participation.”
About the American Institute of CPAs
The American Institute of CPAs (AICPA) is the world’s largest member association representing the CPA profession, with a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education, and consulting. A founding member of the Association of International Certified Professional Accountants, the AICPA sets ethical standards for the profession, attestation standards, and U.S. auditing standards for private companies, not-for-profit organizations, and federal, state, and local governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, partners across the profession to build future talent, and drives continuing education to advance the vitality, relevance, and quality of the profession.
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Contact: Veronica L. Vera
202-434-9215
Veronica.Vera@aicpa-cima.com