Freelancers often navigate a tax system built around traditional employment. Benefits that W‑2 workers receive automatically, retirement plans, dependent savings programs, employer contributions, rarely translate cleanly to self‑employment. The new Trump Accounts, created under the Working Families Tax Cuts, are no exception.

These accounts include a $1,000 federal pilot contribution and allow additional contributions from individuals who want to support a child’s future. But the rules around who can contribute, and how, are not the same for freelancers as they are for traditional employees.

The key question for independent workers is straightforward:

• Can freelancers contribute to Trump Accounts the same way employers can?
• The answer is yes, freelancers can contribute, but only as individuals, not as employers.

The Purpose of Trump Accounts

Trump Accounts are meant to be long‑term savings vehicles for eligible children. Parents or guardians open the account, and the federal government provides a $1,000 pilot contribution when the account is established before the year the child turns 18.

The IRS recently clarified gift‑tax treatment for contributions through Revenue Procedure 2026‑25. The safe harbor allows individuals, parents, grandparents, relatives, or supporters, to contribute without triggering gift‑tax reporting when requirements are met.

This safe harbor applies to individual donors, not employers.

How Freelancers Are Treated Differently with Trump Accounts

Freelancers typically operate as sole proprietors, single‑member LLCs and S‑corps where the owner is also the employee. In these structures, the IRS treats contributions to a child’s Trump Account as personal financial activity, not employer‑provided benefits. There is no current guidance allowing freelancers to contribute through their business entity or payroll system. This means:

• You can contribute personally.
• You cannot contribute as an employer.
• You cannot deduct contributions as a business expense.
• You cannot classify contributions as employer matching or employer-funded benefits.

Until the IRS issues additional clarification, freelancers should assume contributions are personal, nondeductible, and governed by the gift‑tax safe harbor. As such, freelancers can fully participate in Trump Accounts as individuals. This means you can:

• Open an account for an eligible child
• Receive the $1,000 federal pilot contribution
• Make personal contributions under the gift‑tax safe harbor
• Allow relatives or supporters to contribute
• Manage the account through the IRS Individual Online Account and use Form 4547 to establish the account

On the flip side, freelancers cannot:

• Treat contributions as employer benefits
• Deduct contributions through their business
• Contribute through payroll
• Classify contributions as employer matching
• Use Trump Accounts as a business-side tax strategy

Until the IRS issues additional clarification, freelancers should assume contributions are personal, nondeductible, and governed by the gift‑tax safe harbor. As such, freelancers can fully participate in Trump Accounts as individuals. This means you can:

This is the same limitation freelancers face with many employer‑based benefits: the tax code does not automatically extend employer treatment to self-employed individuals unless the IRS explicitly authorizes it.

Next Steps for Freelancers on Trump Accounts

The IRS may issue additional guidance clarifying whether freelancing individuals can be treated as employers and whether S‑corp owners can contribute through payroll as well as how Trump Accounts interact with other tax-advantaged savings vehicles.

Trump accounts do not currently offer employer-style tax advantages for independent workers. Unsure of your next steps with a Trump account? Contact an experienced tax professional or additional guidance.