Trump Accounts, student loan assistance, and other powerful new tools for your benefits strategy.
In part 1 of our blog series, we explored how the One Big Beautiful Bill (OBBB) is reshaping healthcare, HSAs, and FSAs. Now in Part 2, we turn our attention to the lesser-known, but equally important, feature of the bill that open up new ways to support employees and enhance your benefits offering. From the debut of “Trump Accounts” to permanent student loan repayment perks, this is where the legislation gets creative.
Trump Accounts: A New Way to Support Families
A brand-new addition to the benefits landscape, Trump Accounts are designed to help families save for children under 18.
What’s new:
• Employers can now contribute up to $2,500 per year, per child into these tax-advantaged accounts.
• The federal government will seed $1,000 for each born child between 2025 – 2028.
• Contributions are subject to nondiscrimination rules, similar to other qualified benefits.
What this means for you:
• Employers offering family-friendly benefits now how a powerful new tool to stand out to potential recruits.
• These accounts may be especially attractive to younger workforces and those prioritizing financial wellness.
Student Loan Repayment Gets a Permanent Home
Section 127 of the tax code – which governs educational assistance – now permanently includes student loan repayment.
What’s new:
• Employers can contribute up to $5,250 per year toward employee student loan debt, tax-free.
• This is now a permanent benefit beginning in 2026.
What this means for you:
• A major recruitment and retention advantage, especially for millennial and Gen Z employees.
• Employers already offering tuition assistance may want to integrate loan repayment into their programs.
529 Plan Flexibility Expands
College savings plans aren’t just for college anymore.
What’s new:
• 529 Plan funds can now be used for:
- K – 12 education costs up to $20,000
- Post-secondary education costs up to $20,000
- Rollovers into ABLE accounts
• The federal Saver’s Credit has also been expanded to encourage low-income contributions.
What this means for you:
• Employees will likely need guidance on how to take advantage of these key changes.
• Financial wellness programming and communication will be key.
Fringe Benefits: What’s In, What’s Out?
A few changes may affect your existing fringe benefits program.
What’s new:
• Bicycle commuter benefits and moving expense reimbursements will become taxable starting in 2026.
• The Paid Family & Medical Leave (PFML) tax credit has been made permanent and expanded.
What this means for you:
• You may need to adjust how you communicate and report these benefits.
• The PFML credit could provide significant value, especially for employers already offering paid leave programs.
What Employers Should Do Now
To make the most of these new tools:
• Evaluate whether Trump Accounts or student loan repayment align with your workforce’s needs.
• Educate employees on expanded 529 use and fringe benefit tax changes.
• Update policies, plan documents, and vendor platforms ahead of 529.
• Promote new offerings as part of your employer brand and open enrollment campaigns.
Looking for help simplifying your benefits communications? We specialize in making complex topics like these clear and compelling. From explainer videos to custom campaigns, we help employers drive engagement through better communications.
Click here to contact us! Let’s make your message stick.
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