DOL Guidance Clarifies Trump Accounts Not Subject to ERISA

The U.S. Department of Labor (DOL) issued Technical Release 2026-02 providing that Trump account employer contribution programs are generally not “employee pension benefit plans” for purposes of ERISA. Highlights of DOL's reasoning include Trump accounts provide benefits (tax-advantaged savings) for dependents of employees - and not to the employees themselves. 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 Code
• Make or influence the investment decisions with respect to funds contributed to a Trump account
• Represent that the Trump accounts or Trump account contribution program are an employee pension benefit plan or an employee welfare benefit plan established or maintained by the employer (or)
• Receive any payment or compensation in connection with a Trump account.

If employers make available their payroll deduction programs that they have established for IRAs to employees who established their own Trump accounts during the growth period, employers should be careful not to endorse the Trump account (IRA) program. Employers must avoid putting their stamp of approval on, or vouching for, the quality of any specific product or provider.

Permissible activities include the following:

• Employers may place on their intranets Trump account information provided by IRA sponsors.
• Employers may provide employees with neutral information about the benefits of using the payroll deduction arrangement to buy these benefits.
• In summarizing on its intranet website the economic benefits of having a Trump account, the employer may offer a hyperlink to the official Trump account website.