Do not add $5,000 and $2,500. Qualifying employer contributions count inside the $5,000 aggregate annual limit for most contributions.

First confirm the account can receive the contribution

An unclaimed auto account generally accepts only qualified general contributions and an eligible $1,000 pilot contribution. Family and employer contributions should wait until a permitted receiving account has been established and activated after the claim process.

The aggregate annual limit

During the growth period, the total of family, individual, and Section 128 employer contributions is generally limited to $5,000 per child for the year. Cost-of-living adjustments begin after 2027.

The employer sub-limit

Section 128 employer contributions are limited to $2,500 per employee per year, subject to adjustments after 2027. The proposed employer regulations describe that as an employee-level limit, not $2,500 per dependent.

Amounts outside the $5,000 limit

  • The one-time $1,000 pilot program contribution.
  • Qualified general contributions funded through eligible governmental or nonprofit programs.
  • Qualified rollover contributions.

Examples

  • $3,000 family + $2,000 employer: reaches the $5,000 aggregate limit.
  • $2,500 employer + $2,500 family + $1,000 pilot: generally $6,000 enters the account, but the pilot amount is outside the aggregate limit.
  • $2,500 employer + $3,000 family: exceeds the general aggregate limit by $500.

Gift-tax safe harbor for individual donors

Revenue Procedure 2026-25 provides a limited safe harbor under which qualifying cash contributions by an individual donor are treated as completed gifts, not gifts of future interests, and eligible for the annual per-donee exclusion. The conditions include limits on the donor’s other taxable gifts and gift-tax filing circumstances. A contribution is not automatically exempt from gift-tax reporting in every case.

For 2026, the revenue procedure uses the $19,000 annual exclusion in its conditions and examples. Donors making other gifts, filing Form 709 for another reason, using GST or portability elections, or exceeding the exclusion should obtain individualized tax advice.

Test a compliant example in the growth calculator. Trustees, employers, and families may need to coordinate because multiple contributors can share the same limit.

Rule-status note: the detailed employer program regulations published in August 2026 are proposed regulations as of this review date. This page does not present them as final.