US Department of Labor issues guidance clarifying Trump Accounts are not generally employee pension benefits plans

News Release

US Department of Labor issues guidance clarifying Trump Accounts are not generally employee pension benefits plans

WASHINGTON - The U.S. Department of Labor today issued guidance clarifying that employer contributions made to a minor child's Trump Account will not generally be subject to Title I of the Employee Retirement Income Security Act.

A Technical Release from the department's Employee Benefits Security Administration provides clear guidance regarding the treatment of Trump Accounts given their unique status as an individual retirement account that may be funded by contributions from employers, governments, charitable organizations, and family members.

"This guidance should provide the clarity that employers need as the Administration rolls out Trump Accounts to jumpstart a golden age of investing in future generations," said Acting Secretary of Labor Keith E. Sonderling. "Through President Trump's leadership, Trump Accounts are a strong first step towards a secure financial future."

Trump Accounts will build long-term financial security for millions of U.S. citizens under 18 through tax-advantaged investments. Each child born between Jan. 1, 2025, and Dec. 31, 2028, is eligible to receive a $1,000 contribution to their Trump Account from the Treasury Department. Families can also contribute up to $5,000 a year to each Trump Account. In addition, state, local, and tribal governments as well as charities and employers can contribute to a child's Trump Account.

Parents or guardians looking to build long-term financial security for their children or dependents can visit TrumpAccounts.gov to enroll in the program and find out more information on creating an account and downloading the official app.