DOL Provides Guidance on Employer Involvement with Trump Accounts

The Department of Labor (DOL) has issued Technical Release 2026-02, clarifying whether Title I of ERISA applies to Trump accounts in anticipation of the Department of Treasury's (DOT) plan to provide details on employer involvement and funding of Trump account arrangements. DOL concludes in the guidance that 530A Trump accounts and section 128 Trump account contribution programs generally will not constitute “employee pension benefit plans” for purposes of Title I of ERISA, and contributions to such accounts will not generally result in Title I coverage during the growth period. After the growth period, employer involvement with a Trump account should be limited in accordance with existing IRA payroll safe harbor conditions. Several discussion points in reaching its conclusion.

• The definition in section 3(2) of ERISA makes clear that a “pension plan” applies specifically to employees, while Trump accounts in contrast generally provide benefits for dependents of employees.

• To the extent that an account is established for an eligible individual that is an employee, the account would not trigger ERISA coverage if it complied with four conditions under DOL's IRA safe harbor regulation.

  • There are no employer contributions;

  • Employee participation is voluntary;

  • The employer does not endorse the program; and

  • The employer receives no consideration in connection with the program, other than reasonable compensation for administrative services in connection with payroll deductions.

• In the case of employer contributions made to an employee that is the benefitting eligible individual, DOL concludes that employer contributions to Trump accounts during the growth period would not give rise to an ERISA-covered plan where participation is completely voluntary for employees, and the employer does not

  • Impose conditions on utilization of Trump account funds beyond those permitted under the Internal Revenue Code;

  • Make or influence the investment decisions with respect to funds contributed to a Trump account;

  • Represent that the Trump accounts are an employee benefit plan established the employer; or

  • Receive any payment in connection with a Trump account.

DOL also provided examples of reasonable activities that the employer could facilitate without being in violation of the endorsement prong of the safe harbor.