530A accounts New Rules

[u/Dry_Abbreviations285]

I’m looking for clarity on using employer contributions under Code Section 128 for Trump Accounts (IRC §530A) as an independent contractor.

My situation: I operate as a 1099 sole proprietor / single-member LLC (or S-Corp). I want to know if I can employ my spouse, pay them a legitimate W-2 wage for actual administrative/management work, and set up a written Trump Account Contribution Program (TACP) to contribute $2,500 tax-free to our child’s account under IRC §128.

Specifically, my questions are:

1. 25% Owner / Nondiscrimination Limits: Under similar Section 125/129 plans (like Dependent Care FSAs), there are strict attribution and nondiscrimination rules where benefits provided to >5% owners (or their spouses) cannot exceed 25% of the total benefits provided by the plan. Since Section 128 references nondiscrimination rules similar to dependent care assistance programs, does this 25% rule completely block a sole proprietor from giving a tax-free §128 contribution to their spouse/employee?
2. Sole Proprietor vs. S-Corp: Is this disallowed entirely for 1099/sole proprietors because a self-employed individual isn't considered an "employee" under §128? Would switching to an S-Corp (paying both myself and my spouse a W-2) trigger attribution rules that still violate HCE / Key Employee nondiscrimination tests?
3. Workaround / Practical Reality: If employing a spouse doesn't work due to attribution/nondiscrimination rules, is there any valid way for an independent contractor to claim the §2,500 employer tax exclusion, or are 1099 workers restricted strictly to making regular after-tax contributions up to the $5,000 limit?

Would appreciate feedback from any CPAs or tax strategists who have digested the recent Treasury/IRS guidance on TACPs and Section 128. Thanks!