Policy Design for Multiple Funding Flows Into Trump Accounts

The law creating the new Trump Accounts explicitly authorizes employers to provide deposits matching contributions that their employees make to the accounts and also authorizes contributions by philanthropic organizations. Both features are essential for build­ing substantial lifetime assets for America’s children. Implementing them successfully – and ensuring that the funds reach every eligible child efficiently – will require an effective policy platform for routing, verifying, and reporting on third-party contributions. This brief discusses why traditional retail IRAs cannot support matching contributions and how to build a policy platform capable of accommodating multiple contribution streams.