How New IRS Guidance May Affect Real Estate Benefit Strategies

Real estate companies continue to balance workforce needs with rising costs, staffing pressures, and margin discipline. Owners, operators, property and asset managers are looking for benefits that support recruitment and retention without adding unnecessary complexity.

Recent proposed guidance from the IRS and Treasury may give real estate employers a timely reason to revisit benefit design and consider future changes.

Could Trump account benefits help real estate employers recruit and retain talent?

The proposed guidance provides a framework for employers to offer payroll-based contributions to Trump accounts as part of their benefits package. Employer contributions up to $2,500 annually per employee can generally be provided on a tax-favored basis; however, these programs do have administrative and design requirements that will impact payroll and benefits teams.

For real estate companies, the practical question is how this type of program fits the workforce and the business. Employers with large hourly teams, regional operations, or competitive hiring markets may view the benefit differently than owners, developers, or management companies with smaller corporate teams.

The value of the program will depend on employee demographics, payroll capabilities, cost, and how it compares with other recruitment and retention tools.

Review administrative requirements for Trump accounts

Employers considering a Trump account contribution program should understand the associated administrative obligations.

The proposed rules require employers to maintain a written plan, provide employees notice of the plan’s availability, satisfy reporting requirements, perform nondiscrimination testing and coordinate payroll processes, among other obligations. Employers must also properly identify contributions when transmitting them to trustees and comply with various operational requirements.

Practical questions remain regarding contribution processing, account verification, and coordination with financial institutions. Real estate companies interested in establishing a program should discuss implementation considerations with their benefits advisors and payroll providers before adopting a plan and committing to a plan design. Industry practices are still developing, and additional guidance may follow.

Dependent care guidance may offer a more immediate planning opportunity

The proposed regulations also provide long-awaited clarification on nondiscrimination testing for qualified dependent care assistance programs. Most notably, they clarify how to perform testing when employees choose not to participate. For many employers, this guidance could have broader and practical significance, as it could make it easier to pass testing.

This clarification comes shortly after the annual dependent care exclusion increased from $5,000 to $7,500 beginning in 2026. Some employers had questioned whether testing limitations would restrict their ability to provide the higher benefit amount. Under the proposed regulations, that may be less of a concern than previously believed.

For real estate employers, this may be the more immediate planning opportunity. If prior dependent care plan decisions were driven by nondiscrimination testing concerns, the proposed guidance may create room to revisit plan design before the next enrollment cycle.

Next steps for real estate employers reviewing benefit plans

The proposed regulations provide more direction on Trump account contribution programs and dependent care assistance programs. Some real estate companies may explore whether a new Trump account benefit fits their workforce strategy, while many may find the dependent care guidance offers a more immediate reason to re-evaluate existing benefits.

Before making changes, leadership teams should understand how the proposed rules interact with current plan documents, payroll processes, employee communications, and annual testing. A practical review now can help identify opportunities to support employees while managing cost, compliance, and administrative complexity.

As organizations review their workforce and benefits strategies, several questions may be worth discussing: 

• Do our workforce demographics indicate interest in additional family-focused benefits? 
• Should we revisit our dependent care assistance program in light of the proposed testing guidance? 
• Could the increased dependent care exclusion now be offered more effectively under our current plan design? 
• What payroll, administrative and compliance considerations would need to be addressed before implementing changes?

How CLA can help

CLA can help real estate companies evaluate how the proposed guidance may affect employee benefit strategy, payroll administration, and compliance requirements.

Our professionals can work with leadership teams to evaluate the benefits, requirements, and potential fit of employer-sponsored Trump account contribution programs and dependent care assistance programs, including related nondiscrimination requirements.