---
kind: "section"
citation: "26 U.S.C. § 128"
title: "26"
title_heading: "Internal Revenue Code"
number: "128"
heading: "Employer contributions to Trump accounts"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/128"
units:
  - "Subtitle A — Income Taxes"
  - "Chapter 1 — Normal Taxes and Surtaxes"
  - "Subchapter B — Computation of Taxable Income"
  - "Part III — Items Specifically Excluded from Gross Income"
---

# §128. Employer contributions to Trump accounts

- (a) **In general—** Gross income of an [employee](/usc/26/430.md?p=c-7-D-vi) does not include amounts paid by the employer as a contribution to the Trump account of such [employee](/usc/26/430.md?p=c-7-D-vi) or of any [dependent](/usc/26/152.md?p=a) of such [employee](/usc/26/430.md?p=c-7-D-vi) if the amounts are paid or incurred pursuant to a program which is described in [subsection (c)](#c).
- (b) **Limitation—**
  - (1) **In general—** The amount which may be excluded under [subsection (a)](#a) with respect to any [employee](/usc/26/430.md?p=c-7-D-vi) 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)](#b-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)](/usc/26/1.md?p=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)](#b-2-A-ii) thereof.
    - (B) **Rounding—** If any increase determined under [subparagraph (A)](#b-2-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](/usc/26/430.md?p=c-7-D-vi) to provide contributions to the Trump accounts of such [employees](/usc/26/430.md?p=c-7-D-vi) or [dependents](/usc/26/152.md?p=a) of such [employees](/usc/26/430.md?p=c-7-D-vi) which meets requirements similar to the requirements of paragraphs [(2)](/usc/26/129.md?p=d-2), [(3)](/usc/26/129.md?p=d-3), [(6)](/usc/26/129.md?p=d-6), [(7)](/usc/26/129.md?p=d-7), and [(8)](/usc/26/129.md?p=d-8) of section 129(d).

## Source credit

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

## 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.”