Trump Accounts Aren’t Considered Benefit Plans, DOL Says (1)

Employer contributions to Trump Accounts aren’t subject to the federal Employee Retirement Income Security Act, according to guidance from the Department of Labor.

The Employee Benefits Security Administration published a technical release Thursday, outlining why Trump Accounts are generally not considered employee pension benefit plans. Plans subject to ERISA face strict fiduciary standards and create additional legal obligations for employers.

Employers and individuals can begin making contributions to Trump Accounts on July 4.

“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,” acting ...