Skip to content

General education, not advice for your situation.

Carry Forward Learning Start here Intern0 XP

Internal Revenue Code · 26 U.S.C.

§ 128. Employer contributions to Trump accounts

In force Text current through Public Law 119-121 (October 9, 2026) release point 119-121

Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).

Cite as 26 U.S.C. § 128

At a glance

Read from the text, the source credit and the official notes. Not part of the law.

Status
In force
Added
July 4, 2025 by Pub. L. 119–21
Length
3 subsections · 248 words · about 1 min to read
Cross-references
cites 2; cited by 1 Code section and 0 other regulations
(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).

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

Cross-references

Computed from the citations in the text of Title 26 and 26 CFR.

This section cites 2 other sections

Cited by 1 Code section

Amendment history

From the source credit and the official notes, newest first.

  1. Added by Pub. L. 119–21

Where it sits in the Code

  1. Subtitle A Income Taxes
  2. Chapter 1 NORMAL TAXES AND SURTAXES
  3. Subchapter B Computation of Taxable Income
  4. Part III ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME

Nearby sections

Official notes

Show the Law Revision Counsel's notes (amendments, effective dates)

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.”