26 U.S.C. § 128 — Employer contributions to Trump accounts

FEDERAL · 26 U.S.C. · Chapter 1

Employer contributions to Trump accounts

Current through Pub. L. 119-102

Title 26 — Internal Revenue Code·Ch. 1 — NORMAL TAXES AND SURTAXES·Subch. B·Pt. III

(a)In general Gross income of an employee does not include amounts paid by the employer as a contribution to the Trump account of such employee or of any dependent of such employee if the amounts are paid or incurred pursuant to a program which is described in subsection (c).

(b)Limitation

(1)In general The amount which may be excluded under subsection (a) with respect to any employee shall not exceed $2,500.

(2)Inflation adjustment

(A)In general In the case of any taxable year beginning after 2027, the $2,500 amount in paragraph (1) shall be increased by an amount equal to—

(i)such dollar amount, multiplied by

(ii)the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins by substituting "calendar year 2026" for "calendar y

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(a) In general
Gross income of an employee does not include amounts paid by the employer as a contribution to the Trump account of such employee or of any dependent of such employee if the amounts are paid or incurred pursuant to a program which is described in subsection (c).
(b) Limitation
(1) In general
The amount which may be excluded under subsection (a) with respect to any employee shall not exceed $2,500.
(2) Inflation adjustment
(A) In general
In the case of any taxable year beginning after 2027, the $2,500 amount in paragraph (1) shall be increased by an amount equal to—
(i) such dollar amount, multiplied by
(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins by substituting "calendar year 2026" for "calendar year 2016" in subparagraph (A)(ii) thereof.
(B) Rounding
If any increase determined under subparagraph (A) is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100.
(c) Trump account contribution program
For purposes of this section, a Trump account contribution program is a separate written plan of an employer for the exclusive benefit of his employees to provide contributions to the Trump accounts of such employees or dependents of such employees which meets requirements similar to the requirements of paragraphs (2), (3), (6), (7), and (8) of section 129(d).

26 U.S.C. § 128 (Employer contributions to Trump accounts) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Source Credit

History

(Added Pub. L. 119–21, title VII, §70204(b)(1), July 4, 2025, 139 Stat. 186.)

Editorial Notes

Editorial Notes

Prior Provisions
A prior section 128, added and amended Pub. L. 97–34, title III, §§301(a), 302(a), (d)(1), Aug. 13, 1981, 95 Stat. 267, 270, 274; Pub. L. 97–448, title I, §§103(a)(1), (5), (b), 109, Jan. 12, 1983, 96 Stat. 2374, 2375, 2391; Pub. L. 98–21, title I, §§121(f)(2), (g), 122(c)(3), (d), Apr. 20, 1983, 97 Stat. 84, 87; Pub. L. 98–369, div. A, title I, §16(a), July 18, 1984, 98 Stat. 505, related to interest on certain savings certificates, prior to repeal by Pub. L. 101–508, title XI, §11801(a)(10), Nov. 5, 1990, 104 Stat. 1388–520. For savings provision, see section 11821(b) of Pub. L. 101–508, set out as a note under section 45K of this title.
Another prior section 128 was renumbered section 140 of this title.

Statutory Notes and Related Subsidiaries

Effective Date
Pub. L. 119–21, title VII, §70204(e), July 4, 2025, 139 Stat. 188, provided that: "The amendments made by this section [enacting this section and sections 139J, 530A, 6434, and 6659 of this title and amending sections 529A, 4973, 6213, and 6693 of this title] shall apply to taxable years beginning after December 31, 2025."