Contributions to Trump Accounts are exempt from gift tax reporting under the safe harbor provisions issued Monday by the U.S. Department of the Treasury and the Internal Revenue Service.
Consequently, parents, guardians, grandparents and other donors may contribute up to $5,000 annually in after‑tax dollars to a Trump Account without needing to file a gift tax return.
The IRS has addressed taxpayer concerns that contributions to a Trump Account could trigger gift tax reporting, noting that this relief will ease the burden on friends and family who wish to contribute.
The requirement to file a gift tax return had been a potential obstacle, experts note.
To qualify for the annual exclusion, gifts must be present interest, meaning the recipient has immediate access. The IRS now treats cash contributions to a Trump Account as completed gifts that are not subject to future interest rules and are eligible for the annual per‑donee exclusion.
These contributions also count toward the annual $19,000 per‑recipient exclusion for 2026.
“It will eliminate paperwork burdens for taxpayers,” said Lawrence Pon, a certified financial planner and CPA based in Redwood City, California, “so I consider this a very positive step by the IRS.”
It also lessens the IRS’s workload, Pon added, noting that the agency typically processes about 300,000 gift tax returns annually and would face millions of returns if Trump Account contributions were subject to the requirement.
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