News Archive

"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 >>

"[A]ccounts can receive contributions from five sources: [1] The $1,000 federal pilot payment; [2] Qualified general contributions from states, nonprofits or tribal governments for specific groups of children; [3] Employer contributions up to $2,500 annually ... [4] Rollovers from a previous Trump Account; and [5] Voluntary contributions from parents or others up to $5,000 annually[.]"  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 >>

"[IRS Notice 2025-68] lacked some details about the administration of Trump Accounts, such as guidance for employers on how they can fund the plans and roll money out of them for their employees.... The industry is still waiting for guidance on what trustees must do if the annual fees and expenses on a participant's investments change and exceed the 10 basis points, stated in the notice[.]"  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 >>

"What happened at the end of 2025: [1] Trump Accounts ... [2] Expansion of HSAs ... [3] Reduced Hepatitis B vaccination recommendations ...

"What's expected in 2026: [1] Pharmacy Benefit Manager transparency ... [2] Direct-to-consumer Rx programs ... [3] New HIPAA Security Rules ... [4] New electronic disclosure rules for health plans ... [5] Mental health parity ... [6] Transparency ... [7] Surprise billing adjustments."  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 >>

"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 >>

"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 >>

"Employers interested in offering a [Trump Account Contribution Program (TACP)] benefit now have scaffolding upon which to start building out their programs. For example, employers will want to consider whether to allow funding through cafeteria plan salary reductions, as well as the processes for tracking contributions and communicating the new benefit to employees. Meanwhile, the federal government has established a new website with information about TAs and has issued drafts of IRS Form 4547 (Trump Account Election(s)) and related instructions."  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 >>

"Beyond accepting the free $1,000 deposit from the government, advisors generally see more upside from existing UTMA (Uniform Transfers to Minors Act) accounts and 529 plans designed to fund education. Both options have higher contributions limits than Trump Accounts and come with different tax structures."  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 >>

"A Trump account contribution program may be offered via salary reduction under a section 125 cafeteria plan if the contribution is made to the Trump account of the employee's dependent but not if the contribution is made to the Trump account of the employee.... The Treasury Department will select one or more financial institutions as a financial agent to serve as trustee of the initial Trump accounts."  MORE >>

"Notice 2025-68 provides the first round of helpful guidance for IRA providers interested in maintaining these accounts, and employers interested in funding these accounts for their employees.... Most notable is the confirmation that parents can make pre-tax salary deductions (up to $2,500, indexed) through a cafeteria plan to contribute to their child's Trump account. Of course, employers can also simply elect to contribute up to $2,500 (indexed) tax-free to the Trump accounts of their employees under age 18 or to the accounts of their employees' dependents under age 18."  MORE >>