News Archive

"This revenue procedure provides a transfer tax safe harbor for certain individual donors who make one or more contributions to Trump accounts established under section 530A of the Internal Revenue Code.... [F]or taxpayers within the scope of section 4 of this revenue procedure, contributions to Trump accounts will be treated as completed gifts that are not gifts of future interests in property and to which the annual per-donee gift tax exclusion applies. As a result, taxpayers within the scope of section 4 of this revenue procedure will not be required to file gift tax returns reporting such contributions."  MORE >>

"[Technical Release 2026-02] states that Trump Accounts for children are not 'employee pension benefit plans' governed by ERISA.... Title I of ERISA defines mandatory standards for transparency, fiduciary conduct, vesting, and claims procedures for employer-sponsored retirement plans and health/welfare plans. These rules generally will not apply to the newly established Trump Accounts."  MORE >>

"With this clarity provided by the DOL, employers that stay within the guardrails described in the [Technical Release 2026-02] may offer TACPs and TA-related payroll deductions without triggering the full range of ERISA Title I obligations. Employers that facilitate post-growth-period payroll deductions should be especially mindful of the endorsement prong of the IRA safe harbor."  MORE >>

"[The authors] expect that most employers who are interested in establishing Trump account contribution programs intend to do so through a pre-tax salary-reduction feature under a cafeteria plan and/or by providing what has been referred to as a 'match' of the $1,000 seed money provided to the Trump accounts of eligible children born between 2025 -- 2028, which is an employer contribution. For the most part, [in Technical Release 2026-02] DOL has clarified its view that ERISA does not apply to these arrangements."  MORE >>

"The DOL's Technical Release is helpful, but it is agency guidance and not a final regulation.... Employers that are considering implementing Trump Accounts may want to continue planning and wait for further guidance and the finalization of the IRS proposed regulations before implementing. If an employer decides to move forward, [it should] carefully document the program, keep its involvement limited, and avoid treating the arrangement like a conventional employer-sponsored retirement plan, especially after the beneficiary's growth period ends."  MORE >>

"The problem is that Trump Accounts further complicate our already-complex savings account system. We have at least 11 different tax-advantaged savings vehicles, with different rules, limitations, and regulations. Moreover, Trump Accounts are structured as a bizarre mix of Traditional and Roth IRAs, but with additional restrictions ... As such, Trump Accounts really do not provide any additional incentive to save.... [T]he main attraction is the $1,000 initial deposit from the federal government."  MORE >>

"Trump Accounts may be for kids, but the employer benefit conversation is very much for the grown-ups. And employers have a bigger role than most originally thought when Congress created these accounts last year. So yes, Trump Accounts may start as 'baby's first IRA.' But if employers, payroll providers, advisors, and benefits teams get involved, they could become something more: a new family-focused piece of the workplace savings ecosystem."  MORE >>

"This guidance provides welcome relief for employers that are considering adopting an Employer Contribution Program and should result in additional uptake by employers. If employers only fund Trump Accounts established for the benefit of employees’ dependents, then this will function as a straightforward safe harbor for ERISA exemption."  MORE >>

"According to the guidance, Trump Accounts ... and employer contribution arrangements to them generally will not be considered employee pension benefit plans under [ERISA], provided that employers maintain a limited role and meet specific conditions. The clarification removes a potential compliance concern for employers weighing whether to offer contributions to the accounts as a workplace benefit, particularly for employees' children."  MORE >>

"Code section 530A Trump accounts and section 128 Trump account contribution programs generally will not constitute 'employee pension benefit plans' for purposes of the provisions of Title I of ERISA. Employer contributions to the Trump accounts will not generally result in Title I coverage for a Trump account or the contribution arrangement where, as discussed [in this Release], they occur only during the growth period. For periods beyond an account beneficiary's growth period, employer involvement with a Trump account and a contribution arrangement should be limited in accordance with the IRA payroll safe harbor conditions in in 29 CFR 2510.3-2(d)."  MORE >>

"his document provides a notice of public hearing on the ... proposed regulations [for] making an election to open a Trump account ... The hearing is scheduled to be held on July 16, 2026, at 10:00 a.m. Eastern Time (ET). The IRS must receive speakers' outlines of the topics to be discussed by [10 days after publication in the Federal Register, which is currently scheduled for June 5, 2026]."  MORE >>

"The Trump Accounts app will be the main interface for the most historic policy for American families in decades and is available on all major mobile app stores.... The next phase of the Trump Accounts program will include account activation beginning for millions of American families ahead of the official launch on July 4, 2026. As of today, parents and legal guardians who have already signed their children up for Trump Accounts by submitting IRS Form 4547 will begin receiving emails with instructions to complete the account setup process. Activation e-mails for these families will be sent out in phases between now and July 4, 2026. "  MORE >>

"The Trump administration is weighing whether to allow contributions of appreciated stock directly into Section 530A 'Trump Accounts' ... Recent news coverage has described a potential 'double tax benefit' for wealthy donors who contribute appreciated shares. The reality, as set out in the statute itself, is more nuanced."  MORE >>

"On April 15, 2026, the Department of Treasury announced 5 million Accounts had been opened.... Employers should also expect employees to ask whether they will be offering Account contributions as an employee benefit.Employers should be prepared to answer whether employees can contribute through their cafeteria plans.... Employers should also expect employees to ask whether they will be offering Account contributions as an employee benefit."  MORE >>

"File Form 5498-TA, Trump Account Contribution Information, with the IRS and furnish it to the account beneficiary for each Trump account you maintained during the calendar year shown on the form for any calendar year during the growth period of the account beneficiary. For any calendar year after the growth period of the account beneficiary, file Form 5498, IRA Contribution Information, with the IRS and furnish it to the account beneficiary."  MORE >>

"Tennessee Gov. Bill Lee (R) on May 1 signed into law legislation that authorizes the state of Tennessee to be a non-bank custodian for Trump Account funds.... The legislation began as a means to lay the groundwork for a state-run retirement plan that would have provided coverage for those whose private-sector employers do not offer a retirement plan. But that language was replaced by the current wording."  MORE >>

"[Sen. Ted Cruz (R-TX)], who helped create the program, likened employer contributions to a 401(k) match. Some employers have already said they'll contribute for employees' children, and philanthropists have pledged seed money. Cruz envisions a future where babies born this year will have millions saved in the accounts when they reach retirement age."  MORE >>

"Box 5 of 5498-TA calls for the 'Basis or investment in the contract,' an item that is absent on a standard 5498.... Since Trump Accounts can, and often will, contain post- and pre-tax money in the same account, tracking basis will be important for tax reporting and for rollovers.... The IRS is requesting feedback on this form[.]"  MORE >>

"While grandparents will be able to make contributions on behalf of grandchildren to Trump Accounts, IRS rules appear to strictly limit the circumstances where they can open up those accounts. Making matters worse, grandparents may be committing perjury without even knowing it when signing Form 4547 or using the website."  MORE >>

"The origination of the new Form 5498-TA is to comply with the requirements set forth in P.L. 119-21, Sec. 70204 and IRC Section 530A(i) which established Trump Accounts and contribution pilot programs. Form 5498-TA reports contributions, rollovers, basis or investment in the contract, and the fair market value (FMV) of the account for the calendar year shown on the form and is furnished by the trustee of the Trump account."  MORE >>

"Trump Accounts are a new form of traditional individual retirement account (IRA) that the 2025 reconciliation law (P.L. 119-21) created for the benefit of children. Savers will be able to contribute to Trump Accounts starting on July 4, 2026.... Anyone can contribute to a child's Trump Account, although individual contributions during the growth period are not tax-deductible for either the contributor or the beneficiary. Employers can contribute up to $2,500 (adjusted for inflation after 2027) tax-free to the Trump Accounts of employees or their dependents (amount is per employee, per year)."  MORE >>

"Legislation that would have laid the groundwork for a state-run retirement plan providing coverage for those whose private-sector employers do not offer a retirement plan had been coursing through both chambers of the Tennessee legislature. But not anymore -- that language has been replaced with wording that would instead authorize the state of Tennessee to serve as a non-bank custodian for Trump Account funds."  MORE >>

"The proposed rules don’t address employer contribution programs, employer “matching” the Treasury’s contribution, employee salary deductions, investments or ERISA matching considerations ... What do employers need to know? IRS and Treasury are encouraging parents to set up Trump accounts for their children. Parents must actively elect to open an account. Accounts must be set up before an employer can make contributions or deposit salary deductions."  MORE >>

"Under this designation, BNY will manage the initial accounts and help develop the new Trump Accounts app -- a secure, user-friendly platform that will enable families to easily access and manage their accounts. As part of this process, BNY has partnered with Robinhood, which will serve as brokerage and initial trustee for Trump Accounts. Together, these partners will support Treasury's goal of ensuring every eligible child can access a Trump Account quickly and easily."  MORE >>

"Employers interested in making contributions to Trump Accounts or facilitating employee contributions to Trump Accounts may wish to begin planning now to identify open questions as well as internal resources and assistance that may be needed from service providers, in particular if there is a desire to have a program in place under a cafeteria plan in time for open enrollment near the end of 2026."  MORE >>