Trump Account Administration

[Gruegen]

Based on the guidance issued so far, there are clearly many administrative requirements for a Section 128 Trump Account Contribution Program (TACP) including

• Developing a plan document 
• Disclosing the TACP to employees
• Performing three non-discrimination tests (and correction of failures)
• Collection of employee certifications (ie, that the beneficiary of the Trump Account is anticipated to be the employee's dependent; and the beneficiary's date of birth)
• If the employee has multiple dependents, how much of the employer contribution will be made to each dependent's Trump Account
• Verification that employer contribution was made to a valid Trump Account
• Notification to the Trump Account trustees that an amount is a Section 128 contribution
• If the TACP permits employee contributions through a Section 125 cafeteria plan, facilitating employee's changes to 125 deferral amounts
• Funding of employer contributions to each individual Trump Account (ignore this one for now as I am hoping that BNY develops a common remitter program)

My question is....who do you think will be performing these administrative services?

Payroll providers? Retirement Plan Recordkeepers/TPA's? Dependent Care Program providers? Employers themselves? Some new company/service provider that will enter the market? A combination of providers/employers themselves?

[Peter Gulia]

That some employers might encounter difficulty in engaging service providers for needed tasks (or in overseeing service providers) is among reasons some employers have resolved, so far, a go-slow on adopting a § 128 plan.

Yet, some law firms are writing plans. And some service providers offer to collect some elements of needed information and inform a service-recipient employer about those.

These services are not yet so established that there is a ready market convenient for an employer that lacks time and attention to devote to establishing a plan and arranging needed services.