Trump Account Employer Nondiscrimination Test

By Forrest Baumhover, CFP®, EA · Last verified September 13, 2026

Run the ratio percentage (eligibility) and 55% average benefits tests against your employer's Trump Account contributions — free, per the proposed REG-101355-26 rules, with the $2,500 (IRC §128(b)) and $5,000 (IRC §530A(c)(2)) limits built in. (No owner concentration test applies to Trump Accounts — that rule is DCAP-only.)

Total employee count

Highly compensated employee (HCE) count

NHCEs eligible to participate

HCEs eligible to participate

Count only employees who are not excluded: leave out employees under age 21 or with less than one year of service (if the program lets no one in early), and union employees not in the program whose union bargained in good faith over the program (proposed §1.128-3(e)).

Benefiting participants (used for the 55% average benefits test)

Enter every participant who is actually benefiting under the plan (not merely eligible), with the benefit amount paid to each. Leave out contributions made under a pilot match arrangement: one that contributes because an employee’s dependent is a child eligible for the federal pilot program contribution (IRC §6434), offered on the same terms to all employees who are not excluded (the under-21 or under-one-year employees and the good-faith-bargained union employees described above the benefit entries; proposed §1.128-3(e)). The proposed rule disregards them for this test (proposed §1.128-3(d)). They still count toward each employee’s $2,500 exclusion limit and the $5,000 annual contribution limit; the limit check below sees only the amounts you enter here.

Name/label

Benefit amount ($)

HCE

Name/label

Benefit amount ($)

HCE

No owner concentration test applies to a Trump Account contribution program — REG-101355-26’s preamble states plainly that no similar owner-concentration limitation applies under IRC §128. (This rule is DCAP-only, under IRC §129(d)(4).)

Common Questions

What is a Trump Account nondiscrimination test?

Trump Accounts let an employer make tax-favored contributions on behalf of employees, and — like most employer-sponsored benefits — the arrangement cannot disproportionately favor highly compensated employees (HCEs). This tool runs the two tests REG-101355-26 proposes for a Trump Account contribution program — the ratio percentage (eligibility) test and the 55% average benefits test — against your own employee counts and contribution amounts. (The proposed regulations state that the 25% owner concentration test under §129(d)(4) does not apply to Trump Accounts — that rule is DCAP-only.)

Is REG-101355-26 final?

No. REG-101355-26 (91 FR 51611) is a PROPOSED Treasury regulation, published August 11, 2026, and is not yet final as of this tool’s publication. The IRS may change these rules before finalizing them — treat a result from this tool as a reading of the proposed rule, not a settled determination.

What are the Trump Account contribution limits this tool uses?

This tool tests the $2,500 employer limit (IRC §128(b)) and the $5,000 annual limit (IRC §530A(c)(2)), both added by OBBBA §70204 (Public Law 119-21), and follows Notice 2025-68.

Is this tool free?

Yes. It is free to use, with no signup required. This tool does not include a paid certificate or EA sign-off feature.

More from the Desk

More practitioner writing from Forrest Baumhover, CFP®, EA at The Federal Tax Desk on Substack.

Sources

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