Labor Department Clarifies Trump Account Link to Employee Pension Plan

Contributions made to an employee’s Trump Account will generally not be subject to federal pension plan regulations, the Department of Labor (DOL) said in a June 18 statement.
The DOL’s recent clarification concerns whether an employer’s contributions to an employee’s Trump Account are subject to Title I of the Employee Retirement Income Security Act (ERISA).
ERISA is a federal law that governs the standards for most private-sector retirement and benefit plans, including pension plans. Title I of ERISA institutes reporting, disclosure, funding, and other regulations.
In a June 17 technical release, DOL said section 3(2) of ERISA makes it clear that a plan will only be considered a pension plan under the section “if it provides retirement income to employees.”…