On June 17, 2026, the Department of Labor answered the question employers had been sitting on since Trump accounts opened for contributions: does offering to fund one turn an employer into an ERISA (The Employee Retirement Income Security Act of 1974) plan sponsor? In Technical Release 2026-02, DOL laid out the employer contribution rules for Trump accounts directly — no, provided the program stays inside four specific conditions. Step outside them, and the fiduciary, reporting, and disclosure obligations that come with ERISA plan status are back on the table.
The short answer
No, generally not — as long as employee participation is voluntary and the employer stays within four conditions DOL laid out in Technical Release 2026-02. Contributions that fund a Trump account for an employee's dependent fall outside ERISA entirely, since the account benefits the dependent, not the employee.
Contributions made directly to an employee's own account — relevant mainly for 16- and 17-year-old employees — have to meet DOL's four conditions to stay out of ERISA territory.
Technical Release 2026-02 lays out four conditions. Meet all four, and employer contributions to an employee's own Trump account won't create an ERISA-covered pension plan. The employer doesn't:
Employee participation also has to be completely voluntary. Miss any one of these, and the ERISA analysis changes. Worth weighing alongside whatever else sits in your benefits administration lineup — this is additive, not a replacement for anything you already offer.
Condition three is the one with room to trip over, and DOL spent real space on it. Filing IRS Form 5500 for an existing ERISA plan and referencing the Trump account program there doesn't, by itself, count as endorsement — DOL cited several court decisions that reached the same conclusion for similar voluntary arrangements. What does matter is language. Calling it "our benefit," listing it in an employee benefits guide next to the 401(k) and the health plan, or otherwise implying the company sponsors it the way it sponsors other plans crosses the line. The safer framing: the program facilitates access to something the federal government created — the company isn't the sponsor, just the conduit.
The four conditions above cover employer contributions made under IRC Section 128, which are capped at $2,500 per employee per year. There's a separate, older path DOL confirmed still works: an employee funding their own Trump account through payroll deduction, with no employer money involved at all. That arrangement relies on the decades-old IRA payroll deduction safe harbor at 29 CFR 2510.3-2(d) instead of the newer Section 128 conditions. It's a useful option for employers who already run payroll deduction for other voluntary programs — you can extend that same payroll infrastructure to Trump accounts without standing up a formal Section 128 contribution program at all.
DOL specifically named a handful of activities that don't count as endorsement, which means employers don't have to stay silent about the option. Employers can:
The line DOL drew: employers can make employees aware the option exists and explain the mechanics, but can't put a stamp of approval on it or make it look like part of the company's own benefit package.
Not by itself. DOL and multiple courts have found that referencing a voluntary program on an existing ERISA plan's Form 5500 doesn't, on its own, establish that the employer endorsed or sponsored it. It's one relevant fact among several, not a deciding one.
No. Section 128 employer contributions only apply during the account's "growth period," which ends December 31 of the year before the employee turns 18. After that, the account converts to a standard IRA and the Section 128 rules no longer apply.
A Trump Account Contribution Program means the employer puts its own money into the account, subject to the $2,500 annual cap and the four ERISA conditions above. Payroll deduction access means the employee funds the account from their own paycheck with no employer contribution — a different, older safe harbor applies, and the $2,500 cap doesn't. However, all other contributions during the growth period are subject to an aggregate annual limit of $5,000, subject to cost-of-living adjustments after 2027.
Technical Release 2026-02 is sub-regulatory guidance, not a formal rule. It reflects DOL's current position and gives employers a reasonable basis to act on, but it isn't binding the way a regulation would be. Treasury and IRS guidance on other aspects of Trump accounts is still developing.
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Note: This information is for informational purposes only and does not constitute formal tax, legal, or compliance advice. Always consult with qualified tax advisors, legal counsel, and your organization's internal teams for guidance specific to your situation. Additional regulations may apply. For the most accurate and up-to-date information, refer to official government resources and regulatory agencies.