Compliance Stuff

On June 17, 2026, the U.S. Department of Labor (DOL) issued a technical release confirming that employer contributions to a child’s Trump Account won’t be subject to Title I of the Employee Retirement Income Security Act (ERISA). 0:00 8:21 Quick Hits A new technical release from the DOL states that Trump Accounts for children are not “employee pension benefit plans” governed by ERISA. Employers and employees can contribute to Trump Accounts for children. Pilot program deposits of $1,000 each from the federal government will begin in July 2026. 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. Overview of Trump Accounts On July 4, 2025, President Donald Trump signed a federal budget reconciliation bill that included a provision to put $1,000 each in Trump Accounts for newborns who ...

Takeaways The IRS ended 2025 transition relief so payroll systems, reporting workflows and workforce policies should be fully operational in 2026 for information returns, benefit plan operation, immigration compliance pressure, and workforce policy impacts. Immigration and benefits compliance costs rise in 2026, driven by new OBBBA mandated immigration fees, heightened worksite enforcement expectations and benefit plan updates. OBBBA provisions continue phasing in through 2028; employers should engage counsel and vendors proactively to manage compliance risk and minimize disruption. Related links OBBBA’s Tips & Overtime Tax Break: Reclassification Considerations, Reporting Requirements, Industry Impact + More IRS Guidance on Claiming the New Tax Deduction for Tips and Overtime Pay IRS 2025 Penalty Relief — A Break for Employers Under OBBBA’s Tax Reporting Rules New Tax-Advantaged Savings Accounts for Children: Trump Accounts Expected to Go Live in 2026 Federal OBBBA Roundup: What E...

Takeaways: Trump Accounts are a new type of custodial savings account for children under 18, established under new Internal Revenue Code section 530A. For U.S. citizen children born between January 1, 2025, and December 31, 2028, there’s a $1,000 seed contribution from the U.S. Treasury. The White House states the purpose is to “afford a generation of children the chance to experience the miracle of compounded growth and set them on a course for prosperity from the very beginning.” Employers can contribute up to $2,500 per year (adjusted for cost-of-living increases after 2027) to a child’s Trump Account , and this contribution is generally tax-free to the employee. Total contributions are capped at $5,000 per year per child (adjusted after 2027 for cost-of-living increases). Trump Accounts must be invested in eligible mutual funds or exchange-traded funds that track qualified indices like the S&P 500 , with annual fees not exceeding 0.1 percent of the account balance. Earnings ...