The Internal Revenue Service (IRS) and the U.S. Treasury Department have announced that contributions made to Trump Accounts will not require donors to file a federal gift tax return. The guidance removes a potential administrative hurdle for families and others who wish to contribute to these accounts.
Under the new safe harbor rules, parents, grandparents, guardians, relatives, and friends may contribute up to $5,000 per year in after-tax dollars to a child’s Trump Account without triggering gift tax reporting requirements. While these contributions still count toward the annual federal gift tax exclusion, which is $19,000 per recipient in 2026, donors will not have to file a gift tax return solely because they made a contribution.
According to the IRS, these deposits will be treated as completed gifts rather than future-interest gifts, allowing them to qualify for the annual gift tax exclusion.
IRS Chief Executive Officer Frank Bisignano stated that the decision addresses concerns from taxpayers who feared that contributing to a Trump Account would create additional filing obligations. He noted that the change is intended to reduce paperwork for families and supporters who want to help children save for the future.
Tax professionals also welcomed the clarification. Lawrence Pon, a certified public accountant and certified financial planner, explained that the policy not only simplifies the process for taxpayers but also prevents the IRS from processing millions of additional gift tax returns that otherwise could have resulted from widespread participation in the program.
Trump Accounts, officially known as 530A accounts, are available to U.S. children under the age of 18 who have a Social Security number. As part of the program, the Treasury Department provides a one-time $1,000 contribution for eligible children born between 2025 and 2028.
The program officially launched on July 4, and according to the Treasury Department, more than 6 million children have already been enrolled. Parents and guardians can open an account by completing IRS Form 4547 with their federal tax return or by applying through the official Trump Accounts website.