New Delhi, Aug. 11 -- The US Department of the Treasury and the Internal Revenue Service (IRS) on August 11 issued guidance on employer-sponsored Trump Account contribution programmes, including arrangements that allow employees to make pre-tax contributions to accounts set up for their dependents.

The new guidance provides a framework for employers that want to contribute directly to Trump Accounts for employees or their dependents. Treasury Secretary Scott Bessent said the rules will allow employers to contribute up to $2,500 tax-free each year for employees' dependents.

"Trump Accounts are giving American families a new way to build wealth from day one," Bessent said.

Under the Working Families Tax Cuts, employees can make pre-tax c...