Document
Supporting Statement A
ICR 202610-1545-024 · OMB 1545-2340 · Object 174375101.
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| File Type | application/vnd.openxmlformats-officedocument.wordprocessingml.document |
|---|---|
| File Title | Supporting Statement A |
| Author | Friedman Jennifer |
| Last Modified By | Writer |
| File Modified | 2026-10-30 |
| File Created | 2026-10-31 |
| Conversion State | complete |
Extracted Text
SUPPORTING STATEMENT
Internal Revenue Service
Employer Contributions to Trump Accounts
OMB Control Number 1545-2340
1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
Section 70204 of Public Law 119-21, 139 Stat. 72 (July 4, 2025), commonly known as the One, Big, Beautiful Bill Act (OBBBA), which applies to taxable years beginning after December 31, 2025, added section 530A regarding Trump accounts to the Internal Revenue Code (Code). A Trump account is a type of traditional individual retirement account (IRA) that is established for the exclusive benefit of an eligible individual and that is designated at its establishment as a Trump account. When the Trump account is opened, the eligible individual is the owner of the Trump account and is referred to as the account beneficiary.
Section 70204 also added section 128 regarding an exclusion from income for employer contributions to the Trump account of an employee or of any dependent of an employee pursuant to a Trump account contribution program.
The proposed regulations provide guidance regarding employer contributions to Trump Accounts under section 128 of the Internal Revenue Code. The proposed regulations require employers maintaining Trump Account contribution programs to maintain written plans, provide employee notifications and certifications, communicate specified information to trustees, furnish statements, and maintain records necessary to demonstrate compliance with statutory requirements.
In addition to these regulatory requirements, the Department of the Treasury (Treasury) is implementing the Trump Accounts Employer Portal to facilitate employer participation in the program and support the administration of contributions authorized under section 128.
The Employer Portal, scheduled to launch on November 2, 2026, will enable employers to establish their businesses within the system, validate that intended contribution recipients have valid Trump Accounts, and submit remittance files containing the information necessary to allocate employer contributions to the appropriate beneficiaries.
These information collections are necessary to support the timely and accurate processing of employer contributions, reduce the likelihood of unsuccessful transactions and returned funds, and facilitate the proper allocation of contributions to eligible children's Trump Accounts.
2. USE OF DATA
The proposed regulations affect employers maintaining Trump Account contribution programs under section 128 of the Internal Revenue Code. The regulations establish requirements for administering these programs and maintaining records necessary to demonstrate compliance with applicable statutory and regulatory requirements.
The information required under the proposed regulations will be used by employers to administer Trump Account contribution programs and by the IRS, if necessary, during examinations, to verify compliance with applicable statutory and regulatory requirements.
The information collected through the Trump Accounts Employer Portal will be used to facilitate employer participation and support the administration of employer contributions.
Specifically, the Employer Portal will use the information collected to:
1. Establish and identify businesses participating in the Trump Accounts program;
2. Validate whether intended contribution recipients have valid Trump Accounts before contributions are processed;
3. Reduce the likelihood of contributions being rejected or returned to employers because the designated recipient account is not valid;
4. Receive and process employer remittance files containing information necessary to associate contribution amounts with their intended beneficiaries;
5. Facilitate the accurate allocation of employer contributions to the appropriate children's Trump Accounts; and
6. Support program administration, transaction reconciliation, and appropriate recordkeeping.
The information collected is necessary to facilitate the accurate processing and allocation of employer contributions and reduce administrative burden associated with unsuccessful or misdirected transactions.
3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN
The information required by the proposed regulations may be maintained and transmitted electronically using an employer's existing payroll, benefits administration, or recordkeeping systems. The regulations generally establish recordkeeping and third-party disclosure requirements and do not prescribe a specific electronic filing mechanism for those requirements.
Treasury is implementing the Trump Accounts Employer Portal as an electronic mechanism to facilitate employer participation and contribution processing.
The Employer Portal is intended to reduce burden by providing employers with a centralized electronic mechanism to establish their businesses, validate Trump Accounts before submitting contributions, and transmit remittance files containing information necessary to allocate contributions to the appropriate beneficiaries.
The account validation functionality is intended to reduce the likelihood of unsuccessful contribution transactions and returned funds, thereby minimizing the administrative effort associated with identifying, investigating, and correcting contributions that cannot be processed.
Electronic remittance file submission is intended to facilitate efficient processing of employer contributions and reduce manual intervention necessary to associate employer funds with the correct beneficiaries. These electronic capabilities are intended to improve the accuracy and efficiency of employer contribution processing while minimizing unnecessary administrative burden.
4. EFFORTS TO IDENTIFY DUPLICATION
The information required under the proposed regulations is necessary to demonstrate compliance with sections 128 of the Internal Revenue Code and is not otherwise available in a form sufficient to satisfy all applicable requirements.
The Trump Accounts Employer Portal will collect information necessary to establish employer participation, validate Trump Accounts, and process employer remittance files.
The Portal's account validation functionality serves a distinct operational purpose by allowing employers to verify that intended recipients have valid Trump Accounts before contributions are submitted.
Similarly, the information contained in employer remittance files is necessary to associate specific contributions with their intended beneficiaries and support the accurate allocation of funds.
Treasury intends to limit duplicative collection and evaluate opportunities to use information previously provided by employers or available through existing systems, where practicable.
5. METHODS TO MINIMIZE BURDEN ON SMALL BUSINESSES OR OTHER SMALL ENTITIES
The proposed regulations permit employers to use existing payroll, benefits administration, and recordkeeping systems to maintain and transmit required information.
The Trump Accounts Employer Portal is intended to further minimize burden by providing employers, including small businesses, with an electronic mechanism to establish participation, validate Trump Accounts, and submit remittance information.
The validation functionality is intended to reduce the likelihood of rejected or returned contributions, while electronic remittance processing is intended to simplify the submission of contribution information and reduce administrative effort associated with allocating funds to the correct beneficiaries.
6. CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR POLICY ACTIVITIES
Less frequent collection of information through the Trump Accounts Employer Portal would impair employers' ability to establish and administer Trump Account contribution programs in accordance with section 128 of the Internal Revenue Code.
The Employer Portal enables employers to establish their participation, validate that intended contribution recipients have valid Trump Accounts, and submit remittance files necessary to allocate employer contributions to the appropriate beneficiaries.
Without timely collection of this information, employers could face an increased risk of rejected or returned contributions, additional administrative burden, and delays in allocating funds to children's Trump Accounts.
These delays could have financial consequences for eligible children and families. Delayed contributions reduce the time during which funds may be invested and potentially accumulate earnings. Delays during the annual benefits enrollment season could also cause employers to postpone offering Trump Account contributions, potentially reducing opportunities for employees and their dependents to receive these benefits.
The frequency of information collection will align with employers' existing payroll cycles to support timely and accurate contribution processing while minimizing administrative burden.
7. SPECIAL CIRCUMSTANCES REQUIRING DATA COLLECTION TO BE INCONSISTENT WITH GUIDELINES IN 5 CFR 1320.5(d)(2)
The frequency of information collection through the Trump Accounts Employer Portal will depend on each participating employer's payroll cycle. Employers may submit remittance files on a weekly, biweekly, semimonthly, monthly, or other basis, consistent with their established payroll schedules and contribution practices.
Because some employers process payroll more frequently than quarterly, the collection may require submissions more frequently than the general guidelines established under 5 CFR 1320.5(d)(2)(i). This frequency is necessary to support the timely processing and accurate allocation of employer contributions to the appropriate Trump Accounts. Aligning information collection with existing payroll cycles will allow employers to incorporate Trump Account contributions into their established payroll processes, reduce additional administrative burden, and minimize delays in making contributions available to eligible beneficiaries.
The collection frequency is therefore driven by employers' existing payroll practices rather than a separate reporting schedule imposed by Treasury.
8. CONSULTATION WITH INDIVIDUALS OUTSIDE OF THE AGENCY ON AVAILABILITY OF DATA, FREQUENCY OF COLLECTION, CLARITY OF INSTRUCTIONS AND FORMS, AND DATA ELEMENTS
A notice of proposed rulemaking (NPRM) was published on August 11, 2026, (91 FR 51611), soliciting comments and requests for public hearings. Comments will be addressed in the final rule.
Treasury has also coordinated with internal program stakeholders regarding development of the Employer Portal, including employer registration, account validation, and remittance processing requirements, to identify necessary information and opportunities to minimize respondent burden.
9. EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO RESPONDENTS
No payment or gift is provided to respondents for furnishing information required under this collection.
10. ASSURANCE OF CONFIDENTIALITY OF RESPONSES
The Trump Accounts Employer Portal will collect information necessary to facilitate employer participation, validate Trump Accounts, and process employer remittance files.
Any tax return or tax return information obtained by the IRS is protected under section 6103.
11. JUSTIFICATION OF SENSITIVE QUESTIONS
The Trump Accounts Employer Portal does not collect individual Social Security numbers (SSNs). The information collected through the Portal is limited to information necessary to establish employer participation, validate Trump Accounts, and process employer remittance files to ensure contributions are allocated to the appropriate beneficiaries.
The Portal is designed to minimize the collection of sensitive information while supporting accurate account validation and contribution processing.
12. ESTIMATED BURDEN OF INFORMATION COLLECTION
These proposed regulations provide guidance with respect to employer contributions to the Trump accounts program. The Treasury Department and the IRS propose these rules to provide an administrable framework for applying the statutory requirements under section 128.
The collection of information in this proposed regulation is in sections 1.128-2, and 1.128-3. This information is necessary to provide guidance with respect to employer contributions to Trump Accounts. The collections of information are necessary to demonstrate compliance with section 128 and the proposed regulations implementing those statutory provisions.
13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS
There are no required startup, capital, or ongoing system maintenance costs to employers associated with the Trump Accounts Employer Portal.
Employers may manually upload contribution remittance files in CSV format through the Portal without making changes to their existing systems. Alternatively, employers may elect to establish a Secure File Transfer Protocol (SFTP) connection with their existing payroll or benefits administration systems to automate the submission of remittance files. This integration is optional and is not required for participation in the program. Employers that choose to implement SFTP connectivity or modify their existing systems may incur associated costs at their discretion. However, these modifications are not required by Treasury to use the Employer Portal.
14. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT
The existing regulatory collection anticipates no significant additional costs to the Federal Government beyond normal program administration. The portal submissions will be routed to Bank of New York (BNY), Treasury’s financial agent for Trump accounts, for processing.
15. REASONS FOR CHANGE IN BURDEN
This is a new collection of information implementing the statutory requirements under section 128. This will result in an estimated burden increase of 217,000 responses and 1,736,000 hours.
16. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION
There are no plans to use the information collected under the proposed regulations or through the Trump Accounts Employer Portal for statistical tabulation, analysis, or publication.
The information collected through the Portal will be used for program administration, account validation, contribution processing, and associated operational purposes.
17. REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS INAPPROPRIATE
Displaying the OMB expiration date in connection with the proposed regulatory requirements could cause confusion by leading taxpayers to believe that the underlying regulations expire as of the expiration date.
For the Trump Accounts Employer Portal, the applicable PRA notice, OMB control number, and expiration-date display requirements will be addressed in accordance with OMB approval and applicable PRA requirements.
18. EXCEPTIONS TO THE CERTIFICATION STATEMENT
There are no exceptions to the certification statement.