Trump accounts are a new type of education savings vehicle created under the One Big Beautiful Bill Act (OBBBA). These accounts are intended to help families save for qualified education expenses and are subject to specific statutory and regulatory rules. The IRS has issued preliminary guidance on Trump accounts in Notice 2025‑68, which outlines initial operational and compliance expectations while further regulations are developed.
Contributions to Trump accounts are not permitted until July 4, 2026. Prior to that date, the accounts may be established by custodians, but no funding may occur. Once contributions are allowed, employers may make contributions of up to $2,500 per year to a Trump account established for an employee’s child.
Employer contributions to a Trump account are excluded from the employee’s taxable income, providing a tax‑advantaged benefit similar to other employer‑sponsored education assistance programs. These contributions may be offered through a Section 125 cafeteria plan, allowing employers to integrate Trump account contributions into existing benefit structures.
Employers and employees should coordinate closely with plan administrators and tax advisors to ensure proper implementation, compliance with IRS guidance, and alignment with overall education and tax planning strategies as additional regulatory guidance becomes available.
If you need guidance that is tailored specifically to your unique situation, we encourage you to connect directly with Pro Advisor Support. Their experienced team specializes in assisting clergy and church organizations with complex tax, payroll, bookkeeping, and HR matters. Whether you have detailed questions about compliance, deductions, or planning strategies, they can provide expert advice and walk you through the next steps with clarity and confidence.
Clergy Financial Resources
Tax I Payroll I Bookkeeping I HR | Consulting
11214 86th Avenue N.
Maple Grove, MN 55369
Tel: (888) 421.0101
Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
For more information or if you need additional assistance, please use the contact information below.
Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369
Tel: (888) 421-0101
Fax: (888) 876-5101
Email: clientservices@clergyfinancial.com