06.18.26

Trump Accounts Not Employee Pension Benefit Plans: DOL Guidance

by: Brian Anderson

The U.S. Department of Labor (DOL) issued guidance stating that employer contributions to the new Trump Accounts will generally not, by themselves, trigger coverage under ERISA, the federal law governing workplace retirement plans. The accounts, created under the One Big Beautiful Bill Act and sometimes called 530A accounts, are IRA-like savings vehicles for children under 18 with special rules during a “growth period.” The DOL said ERISA is typically not implicated if employers take a limited role and avoid controlling or marketing the accounts. Contributions are capped, investments are limited to diversified U.S. index funds and withdrawals are generally restricted until adulthood. The program is set to launch July 4.

Read the full article on 401K Specialist