The IRS and Treasury Department issued a gift tax reporting safe harbor on June 29, 2026, allowing parents, grandparents, and other donors to contribute to Trump Accounts without triggering federal gift tax filing requirements, according to Revenue Procedure 2026-25.
Under the safe harbor, contributions made by individual donors to Trump accounts in a given year will not be subject to gift tax reporting requirements if certain conditions are met. “By granting this relief, the IRS has responded to concerns raised by taxpayers who planned to make contributions to a Trump account but worried such donations would trigger the gift tax reporting rules,” IRS Chief Executive Officer Frank J. Bisignano said in a statement.
The guidance clarifies that qualifying contributions will be treated as completed gifts that are not gifts of future interests in property and therefore qualify for the annual per-donee gift tax exclusion. For 2026, that exclusion allows donors to give up to $19,000 per recipient without filing a gift tax return. Parents and guardians can contribute up to $5,000 annually in after-tax dollars to a Trump Account and avoid the filing requirement.
Trump Accounts are tax-deferred savings accounts for children under 18 created under the One Big Beautiful Bill Act, signed into law in July 2025. The accounts are designed to give children a financial head start, with eligible children receiving a one-time $1,000 federal contribution if born between 2025 and 2028. Contributions grow tax-deferred until withdrawal.
The safe harbor addresses a significant concern that had been raised by tax professionals and families since the accounts launched. The gift tax reporting requirement had created uncertainty, as some experts questioned whether Trump Account contributions would qualify for the annual exclusion since beneficiaries cannot access funds until age 18. By clarifying that these contributions are present-interest gifts qualifying for the exclusion, the IRS removed a major paperwork burden. “It’s going to remove paperwork burdens on taxpayers,” said Lawrence Pon, a certified financial planner and CPA based in California. “The IRS normally gets about 300,000 gift tax returns per year, and if Trump Account contributions were subject to this requirement, the number of returns will be in the millions.”
As of June 4, 2026, the IRS reported that nearly 6 million children had been signed up for Trump Accounts, reflecting strong early adoption of the new savings vehicle. Contributions to the accounts can be made starting July 4, 2026, and can come from parents, guardians, relatives, friends, employers, and state programs.
Sources
- IRS (.gov) — Official announcement of Revenue Procedure 2026-25 and safe harbor details
- CNBC — Reporting on the safe harbor, annual exclusion amount of $19,000 for 2026, expert commentary from Lawrence Pon, and enrollment statistics
- Journal of Accountancy — Details on the revenue procedure, Trump Account rules under Section 530A, and enrollment figures
