IRS says contributions to Trump Accounts exempt from gift-tax filing

The U.S. Treasury Department and the Internal Revenue Service issued guidance stating that contributions to Trump Accounts will not be subject to gift-tax reporting under existing safe-harbor rules. Parents, guardians, grandparents and other donors can give up to $5,000 per year in after-tax dollars to a child’s Trump Account without filing a gift-tax return.

"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 Bisignano said in a statement.

The rule treats cash contributions as completed gifts that qualify for the annual per-donee exclusion, which is $19,000 per recipient for 2026. The change removes the need for paperwork for donors and reduces the IRS workload, which normally processes about 300,000 gift-tax returns annually.

"It's going to remove paperwork burdens on taxpayers," said Lawrence Pon, a certified financial planner and public accountant in Redwood City, 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 would be in the millions."

Trump Accounts, also known as 530A accounts, are available to any U.S. child under 18 with a Social Security number. A pilot program provides a one-time $1,000 Treasury contribution for babies born between 2025 and 2028. More than 6 million children have been enrolled so far. Parents can open an account before the July 4 launch by submitting IRS Form 4547 with their tax return or through the TrumpAccounts.gov portal.