New ERISA Exemption on the Block: DOL Clarifications on Trump Accounts

On June 18, 2026, the U.S. Department of Labor (DOL) published Technical Release 2026-02, concluding that employer contribution arrangements associated with Trump Accounts are generally not subject to the Employee Retirement Income Security Act (ERISA). However, as discussed in this article, this general presumption includes important caveats.

Background on Trump Accounts

On July 4, 2025, President Donald Trump signed the One Big Beautiful Bill Act (OBBBA), which introduced “Trump Accounts”, individual retirement accounts established for the exclusive benefit of an eligible minor individual. Trump Accounts went live on July 4, 2026. For infants born between January 1, 2025 and December 31, 2028, the U.S. Department of Treasury will deposit $1,000 into a Trump Account. Total contributions to Trump Accounts are capped at a $5,000 annual limit, $2,500 of which could be made by an employer. Contributions may be made until January 1 of the calendar year in which the minor child will attain age 18. To learn more about Trump Accounts, please see Employer Contributions to Trump Accounts.

DOL: Trump Accounts Generally Not Subject to ERISA

Because Trump Accounts are designed to benefit minor children, the DOL expects the beneficiaries of these accounts to be employees’ children and relatives.

Accounts that Benefit Dependents of Employees: Because Trump Accounts are designed to benefit dependents of employees, rather than the employee-participants themselves, Trump Accounts are not considered employee benefit plans under section 3(2) of ERISA. Based on their source of contributions, even if funded in whole or in part by employer contributions, Trump Accounts will generally not be considered employee benefit plans.

However, the DOL recognizes that there are situations in which an employee may be the beneficiary of a Trump Account. Under these circumstances, a contribution program providing employer contributions to employee Trump Account beneficiaries could become subject to ERISA. To avoid this result, employers must ensure that participant in any Trump Account benefit program is voluntary, and the employer does not:

• Impose conditions on utilizing funds from Trump Accounts;
• Influence or make investment decisions;
• Represent that Trump Accounts are an employee benefit plan sponsored by the employer; or
• Receive any compensation in connection with a Trump Account.

IRA Safe Harbor

Employers may instead facilitate payroll deductions to fund Trump Accounts. The DOL confirmed that this type of arrangement could qualify for the existing IRA payroll-deduction safe harbor and would not constitute an ERISA benefit plan. The IRA safe harbor will apply if:

• Employer contributions cease after the growth period;
• Participation is voluntary;
• There is no employer endorsement; and
• The employer does not receive any consideration (except for reasonable compensation for payroll deduction services provided).

The guidance emphasizes that to avoid ERISA requirements, employers must maintain neutrality and not endorse any specific contribution arrangement program. However, the DOL clarified that an employer may publicize the program to employees, provide neutral information about the benefits, collect employee contributions and include a hyperlink on the employer’s intranet to the official Trump Account website without compromising its neutrality.

Trump Accounts officially launched on July 4, 2026. As such, their operation is new and additional clarifications through guidance may be necessary. To ensure that employer contribution arrangements to Trump Accounts are compliant with existing guidance and to avoid unintended employee benefit plans, employers should contact their Reinhart attorney with questions.