IRS offers gift tax safe harbor for contributions to Trump accounts

The IRS on Monday issued Rev. Proc. 2026-25, which provides a gift tax reporting safe harbor for individual donors who make one or more contributions to Trump accounts under Sec. 530A and satisfy certain conditions.

If the conditions are met, contributions will be treated as completed gifts that are not future interests in property and to which the annual per-donee gift tax exclusion applies, the IRS said. Covered taxpayers will not have to file gift tax returns reporting these contributions.

Trump accounts are a new type of individual retirement account for eligible children under Sec. 530A, which was added to the Internal Revenue Code by H.R. 1, P.L. 119-21, known as the One Big Beautiful Bill Act.

A $1,000 contribution from the federal government is available under Sec. 6434 for eligible children born after Dec. 31, 2024, and before Jan. 1, 2029. Eligible individuals are generally children with a Social Security number who have not yet reached the calendar year in which they turn 18 years old prior to the election to open a Trump account.

As of June 4, the IRS said, it had received nearly 6 million elections to open a Trump account.

In March, the IRS issued proposed regulations under Sec. 530A (REG-117270-25) that provide guidance on how to open initial Trump accounts and proposed regulations under Sec. 6434 (REG-117002-25) that provide details on the pilot program for the $1,000 donation.

— To comment on this article or to suggest an idea for another article, contact Martha Waggoner at Martha.Waggoner@aicpa-cima.com.