# Prop. Treas. Reg. § 1.129-1: Dependent care assistance programs.

Proposed regulation, not in force. REG-101355-26, 91 FR 51611, published 2026-08-11 <https://www.federalregister.gov/documents/2026/08/11/2026-16314/employer-contributions-to-trump-accounts-and-nondiscrimination-rules-for-dependent-care-assistance>. Interprets 26 U.S.C. § 129.

Par. 2. Sections 1.128-1 through 1.129-2 are added to read as follows:

(a) Definitions. For purposes of section 129, this section and § 1.129-2—

(1) Dependent care assistance. The term dependent care assistance has the meaning set forth in section 129(e)(1).

(2) Dependent care assistance program. The term dependent care assistance program means a separate written plan of an employer for the exclusive benefit of its employees to provide such employees with dependent care assistance that satisfies the requirements of section 129(d) and this section.

(3) Dependent care assistance provided to an employee. The term d ependent care assistance provided to an employee means amounts paid or incurred by the employer to provide dependent care assistance to the employee that are excludable under section 129, including amounts provided through a salary reduction agreement under a section 125 cafeteria plan.

(4) Employee. The term employee means an individual who is an employee under the common-law standard described in § 31.3401(c)-1 of this chapter, and a self-employed individual within the meaning of section 401(c)(1).

(5) Employer. The term employer means the person that is the employer of an employee under the common-law standard described in § 31.3401(c)-1 of this chapter. All persons treated as a single employer under section 414(b), (c), (m), or (o) are treated as a single employer for purposes of section 129.

(6) Highly compensated employee or HCE. The term highly compensated employee has the meaning set forth in section 414(q).

(7) Non-highly compensated employee or NHCE. The term non-highly compensated employee means an employee who is not a highly compensated employee.

(8) Principal shareholder or owner. The term principal shareholder or owner means an individual, or such individual's spouse or dependent, who (on any day of the taxable year) owns more than 5 percent of the stock or of the capital or profits interest in the employer.

(9) Plan year. The term plan year means the 12-month period on the basis of which the dependent care assistance program is administered (or, if shorter, the period for which the program is maintained).

(b) Applicability date. This section applies to plan years beginning on or after the date of publication of the final rule in the Federal Register .