News Archive

"The promise of giving kids 'free money' surely piqued the interest of children and parents alike. Employers, however, are not all rushing to incorporate Accounts into the suite of benefits offered to employees.... [T]he vast majority are waiting on more guidance to determine how the Accounts will operate in conjunction with existing benefits offered to employees."  MORE >>

"One of the requirements under Section 128 of the Code for a valid employer-provided Trump account contribution is that the employer adopt a 'separate written plan.' Although additional guidance may be needed before finalizing a separate written plan document, in light of commentary in the Notice concerning the anticipated requirements of a Trump account contribution program, Section 129 dependent care assistance program plan documents may provide a good starting point for plan sponsors that are considering offering employee pre-tax contributions to Trump accounts."  MORE >>

"The Section 125 cafeteria plan rules provide that employees can make a mid-year health plan election change upon the change in residence of the employee, spouse, or dependent where a) the move affects the individual’s eligibility for coverage under the plan, and b) the health plan election change is consistent with the individual’s change in residence."  MORE >>

"Perhaps the biggest open question: Will Trump Accounts be subject to ERISA? ... [Until] guidance arrives, employers face uncertainty about fiduciary obligations, reporting requirements, and administrative burdens.... Early adopters like the major financial institutions have the resources and expertise to navigate ambiguity. For most employers, waiting for final regulations and ERISA guidance before committing may be the prudent path."  MORE >>

"To contribute to employees' Trump accounts starting as soon as July 4, 2026, an employer must establish a [Trump account contribution program (TACP)] ... [E]arly TACP adoption poses the risk that the final Trump account regulations, expected in 2026, will impose new obligations on TACP design and administration. Additionally, it remains unclear whether TACPs are 'employee welfare benefit plans' under [ERISA]."  MORE >>

"Trump Accounts present a meaningful new benefits opportunity for employers through tax-free employer contributions under Section 128 and pre-tax employee contributions through Section 125 cafeteria plans. Although Trump Accounts cannot receive contributions before July 4, 2026, employers interested in the benefit can begin evaluating budget considerations, program design, trustee coordination and nondiscrimination rules."  MORE >>

"To provide employer contributions, an employer must establish a Section 128(c) 'Trump account contribution program'  ... Employers that establish a Trump account contribution program will also be subject to similar requirements that apply to Section 129 Dependent Care Assistance Programs (DCAPs) ... regarding discrimination, eligibility, notification, statements, and benefits.... [C]ontributions can be made via salary reductions as a part of an employer's Section 125 cafeteria plan if the contribution is made to the Trump account of the employee's dependent[.]"  MORE >>

Rev. Dec. 2025. "Use Form 4547 to make the election to establish an initial Trump account for the exclusive benefit of a child who is eligible for a Trump account. Also, use Form 4547 to make an election for a $1,000 pilot program contribution from the U.S. Treasury to a child's Trump account if they are eligible for the contribution." [Also available: IRS Form 4547, Trump Account Election(s), and IRS Form 8879-TA, IRS e-file Signature Authorization for Form 4547, Trump Account Election(s)]  MORE >>

"[B]eginning July 4, 2026, employers may contribute to the Trump Accounts (TAs) of their eligible employees or the employees' dependents through a Trump Account Contribution Program (TACP).... [E]mployers making contributions pursuant to a TACP must affirmatively indicate to the TA trustee that the contribution is an employer contribution excludable from the employee's gross income."  MORE >>

"Employers that are considering whether to fund these Accounts may find that there are more effective ways of providing compensation and promoting savings. Employees may be more interested in placing money into a more flexible savings option, such as a retirement savings account, Health Savings Account or 529 account."  MORE >>

"Employers have no legal obligation to contribute to Trump Accounts, but tax-exempt employer contributions may enhance employee benefit offerings.... [R]ecent IRS guidance confirms the following: [1] Employers may contribute up to $2,500 to employees' or their children's Trump Accounts pre-tax.... [2] The $2,500 limit applies on a per employee basis ... [3] Any employer contributions must be made pursuant to a written plan document and the contributions must comply with applicable nondiscrimination testing rules[.]"  MORE >>

"Employers may make their employer contributions or may facilitate employee salary reduction contributions. The employer contributions will not be taxable income to the employee. The employee salary reduction contributions will be taken on a pre-tax basis. In order for either type of contribution to occur, the employer must adopt a Trump Account Contribution Program."  MORE >>

Seventeen 2026 compliance guides cover common employee health and welfare benefits issues and strategies for employers, including COBRA, HSAs, domestic partner issues, HIPAA, ICHRA, and more.   MORE >>

"As we approach 2026, employers sponsoring cafeteria plans may take advantage of several important developments that permit optional changes to plan design and administration.... [1] Dependent Care FSA limit increase.... [2] Potential introduction of Trump Accounts.... [3] Health FSA and carryover limit adjustments.... [4] Nondiscrimination testing considerations."  MORE >>

"Notice 2025-68 addresses several topics of interest to employers, including: [1] Employers can offer employees the option to fund accounts for their dependent children via pretax contributions under an Internal Revenue Code (IRC) Section 125 cafeteria plan. [2] The $2,500 limit on employer contributions that are non-taxable to the employee is an annual limit that applies per employee regardless of how many dependent children the employee has.... [3] Account trustees -- not employers -- are responsible for ensuring that aggregate individual and employer contributions don't exceed the annual $5,000 limit."  MORE >>

"Employer contributions must be made pursuant to a Code Section 128(c) Trump account contribution program. Requirements similar to requirements that apply to a dependent care assistance program (regarding discrimination, eligibility, notification, statements, and benefits) apply to a Trump account contribution program."  MORE >>

"As subsidies shrink or disappear, many people are seeing their exchange premiums increase dramatically ... The cafeteria plan rules do allow for election changes if an employee (or spouse or eligible dependent) who is currently enrolled in employer sponsored coverage seeks to change their election in order to enroll in exchange coverage. This, however, is a one-way street ... It does not allow individuals to move from exchange coverage onto group plans."  MORE >>

"Employers who wish to make contributions to Trump Accounts starting next year will be required to establish a separate written plan (and, if applicable, may be required update its Code Section 125 cafeteria plan document to enable employee pre-tax contributions). Employers may also consider other steps that may be required to operationalize contributions."  MORE >>

"Employers may make contributions of up to $2,500 (subject to cost-of-living adjustments after 2027) per calendar year to the Trump account of an employee (or the employee's dependent) that will be excluded from the employee's gross income. An employer must make contributions under a 'Trump account contribution program,' which is a separate written plan maintained by the employer for the exclusive benefits of its employees that meets requirements regarding discrimination, eligibility, notification, statements and benefits similar to the requirements of a dependent care assistance program under Section 129 of the Internal Revenue Code."  MORE >>

"Financial institutions that currently offer IRAs will want to consider whether they want to add this new account option. Although the rules are similar to IRAs, there are a number of nuanced differences that will require careful set-up.... Employers should consider whether they want to add Trump Account contributions to their employee benefit line-up. Employers who do so will need to establish a Section 128(c) Trump Account contribution program."  MORE >>

"[Notice 2025-68] provides Q&As addressing the various Trump account requirements, along with a number of important clarifications regarding: [1] how the accounts are established, [2] available contribution sources (including the pilot program and employer programs), [3] distribution and investment restrictions, [4] reporting requirements, [and] [5] the (in)applicability of ERISA for employer programs."  MORE >>

"End of year is a great time to review and prepare for upcoming compliance deadlines related to your group health plan offerings. Here's what you need to know to prepare for a new year: [1] [ACA] ... [2] Gag clause attestation ... [3] Internet price comparison tool ... [4] Plan document updates ... [5] Nondiscrimination testing ... [6] Life insurance imputed income."  MORE >>

"There are a variety of mistaken elections that can occur each year. They may be made by employees out of confusion, the result of bad programming in the enrollment platform, or mistaken paper election.... [This article discusses] the parameters of correcting cafeteria plan elections."  MORE >>

Dec. 2025. "Use Form 4547 to make the election to establish an initial Trump account for the exclusive benefit of a child who is eligible for a Trump account. Also use Form 4547 to make an election for a $1,000 pilot program contribution from the U.S. Treasury to a child's Trump account if they are eligible for the contribution." [Also available: Draft IRS Form 4547: Trump Account Election(s)]  MORE >>

"While there are still several unanswered questions regarding implementation and administration of Trump accounts, the guidance provides employers more clarity on how they can include Trump account contributions among the benefits offered to employees. The IRS included a comment request in Notice 2025-68 on several issues regarding these accounts, and ... additional guidance from IRS [is expected]."  MORE >>