An employee benefits and ERISA team authored a Westlaw Today article discussing new Trump Accounts for employees' dependents, detailing key features and considerations related to tax and the Employee Retirement Income Security Act (ERISA).
The authors note that Trump Accounts may become a valuable recruiting and retention tool and will generally not be subject to ERISA. The $2,500 annual tax-free employer contribution, combined with years of compound growth potential, could be compelling for employees with children.
However, given the significant regulatory gaps, employers should proceed cautiously and monitor IRS and Treasury guidance as additional regulations are expected.
The article was authored by David Kirchner, principal in the benefits consulting group, ERISA and benefits partner Josh Lichtenstein, who heads the firm’s ERISA fiduciary practice and co-leads the firm’s collective investment trust (CIT) practice, ERISA and benefits partner Sharon Remmer, co-leader of the firm’s CIT practice, and ERISA and benefits counsel Jonathan Reinstein.
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