Trump Accounts for Small Business Owners: The Benefit Almost Nobody Offers Yet
By Tucker P. Nicholas, Private Wealth Advisor at PAC Financial, Harrisburg, PA. July 17, 2026.
Pennsylvania business owners now have a recruiting tool most of their competitors have never heard of. Since July 4, 2026, employers can contribute up to $2,500 per year toward an employee's child through the new Trump Account program, tax-free to the employee and deductible for the business. Pair it with SECURE 2.0 retirement plan credits and a small company can build a big-company benefits package at a fraction of the sticker price. Here is how the pieces fit.
What is the Trump Account employer contribution?
Trump Accounts are the new investment accounts for children under 18, created by the 2025 tax law. Employers can contribute up to $2,500 per employee per year toward the employee's child's account through a formal workplace program. The employee pays no income tax on that contribution, and the business deducts it as a compensation expense. The contribution counts toward the account's $5,000 combined annual limit, so it coordinates with what the family puts in on its own.
Two things make this interesting for a small employer. First, it is brand new, which means offering it puts you ahead of nearly every competitor in your hiring market. Second, it speaks directly to the employees hardest to keep: working parents.
Is there a tax credit for Trump Account contributions?
No, and you should be suspicious of anyone who tells you otherwise. The Trump Account employer contribution is a business deduction plus a tax-free benefit for your employee. That is worthwhile, but it is not a credit. The actual credits, the dollar-for-dollar kind, come from somewhere else: the SECURE 2.0 retirement plan incentives. The smart play is using both.
The real money: SECURE 2.0 tax credits
If your business does not yet have a retirement plan, federal law currently offers three separate credits for starting one:
1. Startup cost credit. Eligible employers with 50 or fewer employees can claim a credit covering 100% of plan startup and administration costs, up to $5,000 per year for the first three years. That is up to $15,000 in credits for costs you would pay anyway.
2. Employer contribution credit. Smaller employers may also claim a credit for a portion of the contributions they make for employees, up to $1,000 per eligible employee, phasing down over the plan's first five years.
3. Auto-enrollment credit. Adding automatic enrollment earns an additional $500 per year for three years.
Eligibility rules, employee counts, and phase-outs apply to each credit, and your tax professional should run your specific numbers. But the direction is clear: Washington is paying small businesses to start retirement plans.
And Pennsylvania is about to require it anyway
The Keystone Saves program is Pennsylvania's move toward requiring employers without a retirement plan to enroll workers in a state-run option. Business owners who act before a mandate forces the issue get to choose their plan design, capture the SECURE 2.0 credits, and present it to employees as a benefit they built rather than a requirement they absorbed. Owners who wait get whatever the state hands them.
How the stack works
| Benefit | What it does | Tax advantage |
|---|---|---|
| SIMPLE IRA | Core retirement benefit for you and your employees | SECURE 2.0 credits up to $5,000 per year for startup costs, plus contribution and auto-enrollment credits; employer contributions deductible |
| Trump Account Employer Program | Up to $2,500 per year toward an employee's child's account; a standout benefit for working parents | Deductible for the business; tax-free to the employee |
| Combined | A benefits package that competes with much larger employers for talent | Credits offset plan costs while deductions cover the benefit dollars |
Figures as of July 2026 and subject to change. Credit eligibility depends on employee count, compensation levels, and other requirements. Consult a qualified tax professional regarding your circumstances.
What this looks like in practice
A Harrisburg contractor with a dozen employees starts a SIMPLE IRA, claims the startup credit, and adds a Trump Account contribution program for employees with young kids. The retirement plan handles the Keystone Saves question before the state asks it. The Trump Account benefit costs a fraction of a raise and gets talked about at kitchen tables all over town. When that contractor is competing for a foreman against a bigger outfit, the benefits conversation is suddenly a fair fight.
Already have a retirement plan? This still applies to you.
Existing plans are where we find the most money left on the table: plans paying legacy fees, plans that outgrew their design, and owners who never heard about the contribution credit when they started. A plan review costs you an hour. We also help existing plan sponsors bolt on the Trump Account program, which takes less setup than most owners expect. If you already work with a provider, a second opinion on your current plan is a reasonable thing to ask for.
Talk to us and see what's right for your business
We are a third-generation independent firm at 5291 Devonshire Road in Harrisburg. We design and service small business retirement plans across Central Pennsylvania and beyond, and we help owners add the Trump Account employer benefit alongside them. First conversation is about your business and your people, not a pitch.
Stephen A. Marrazzo
Financial Advisor
T: (717) 564-6400 ext 104
E: smarrazzo@osaicwealth.com
Tucker P. Nicholas
Private Wealth Advisor
T: (717) 564-6400 ext 181
E: tnicholas@osaicwealth.com
Official sources
Trump Account details: trumpaccounts.gov. Retirement plan credit details: IRS.gov. Our full guide: Trump Accounts at PAC Financial.
Compliance Notice
This content is for informational purposes only and should not be construed as specific investment, tax, or legal advice or a recommendation. Trump Accounts are governed by Public Law 119-21 and 26 USC Section 530A. Tax credits described are subject to eligibility requirements under applicable law, including employee count and compensation limits, and are subject to change; consult a qualified tax professional regarding your circumstances before acting. Rules, eligibility requirements, contribution limits, and government contribution amounts are subject to change and future legislation and regulation. Investment performance is not guaranteed and account values may fluctuate. PAC Financial does not establish or administer Trump Accounts and is not affiliated with the U.S. Department of the Treasury or its financial agents. Visit https://trumpaccounts.gov/ for official information. Securities and advisory services offered through Osaic Wealth, Inc., member FINRA/SIPC. PAC Financial and Osaic Wealth are separately owned and other entities and/or marketing names, products or services referenced here are independent of Osaic Wealth. Check the background of your financial professional on FINRA's BrokerCheck.