In response to requests from the regulated community, the Department of Labor this morning 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 (ERISA).
“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 Secretary of Labor Keith E. Sonderling
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.”
Per today’s guidance, a Trump Account is subject to certain special rules inapplicable to other individual retirement arrangements under section 408 of the Internal Revenue Code, most of which apply only during the period that ends before January 1 of the calendar year in which the account beneficiary attains age 18 (growth period). For example, a child born on October 1, 2025, would turn 18 on October 1, 2043, and therefore the last day of the growth period with respect to the child would be December 31, 2042.
The special rules that apply only during the growth period include: (i) funds in a Trump Account can be invested only in eligible investments, (ii) a Trump Account has a separate contribution limit from other individual retirement arrangements, (iii) a Trump Account is generally not allowed to make distributions, (iv) no deduction by an individual is allowed under section 219 of the Code for any contribution to a Trump Account, and (v) trustees of Trump Accounts have similar but different reporting requirements from trustees of other IRAs. After the growth period, most of these special rules cease to apply, and the rules under section 408 of the Code governing traditional IRAs generally apply.
Today’s release said 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. Enrollment can also be done by submitting Form 4547 with a tax return.
Trump Accounts are scheduled to officially launch on July 4.
Today’s guidance from the DOL follows the March 2026 release of Trump Account guidance from the Treasury Department and IRS on how the accounts will be established and administered.
Check out today’s guidance here.
SEE ALSO:
• Trump Accounts App Now Live in Advance of Program’s July 4 Launch
• Trump Accounts Take Shape with New Treasury, IRS Guidance
• Treasury Department Pins BNY, Robinhood for Trump Account Management