IRS Provides Gift Tax Filing Relief for Certain Trump Account Contributions
Posted on July 16, 2026
IRS Provides Gift Tax Filing Relief for Certain Trump Account Contributions
The IRS has issued Rev. Proc. 2026-25, providing a tax safe harbor for certain contributions to Trump Accounts. This guidance is important because, without relief, contributions to these accounts could raise gift tax reporting issues even when the contribution amount is relatively small.
Importantly, the safe harbor does not apply automatically to every Trump Account contribution. To rely on the safe harbor for a calendar year, an individual donor must satisfy all five IRS requirements for that year:
1. The donor must be an individual.
2. The donor’s only taxable gifts for the year must be qualifying cash contributions to Trump Accounts (limited to $5,000 per Trump account per year, adjusted for inflation after 2027), with each contribution made before the calendar year in which the account beneficiary attains age 18.
3. Total gifts to each beneficiary, including contributions to that beneficiary’s Trump Account, must not exceed the annual exclusion amount.
4. The contributions must not result in gift or GST tax after available exclusions and exemptions are applied.
5. No gift tax return may otherwise be required or filed for the year.
Only if these five requirements are met are qualifying Trump Account contributions treated as completed gifts that are not gifts of future interests and are thus eligible for the annual gift tax exclusion. If any requirement is not satisfied, the safe harbor is not available, and the donor may be required to file a gift tax return and report the Trump Account contributions under the general gift tax rules.
Example 11: In calendar year 2026 individual donor (Taxpayer) contributes $5,000 cash to each of three Trump accounts established for account beneficiaries A, B, and C, and makes an additional gift to C of $13,000 cash. Taxpayer makes no other gifts during the calendar year and is not required to, and does not, file a gift tax return for the calendar year for any other purpose. The $15,000 in contributions to Trump accounts do not generate a gift or GST tax liability, after taking into consideration the Taxpayer’s remaining lifetime applicable exclusion amount or remaining GST exemption.
Under these facts, the safe harbor requirements are met, and Taxpayer’s 2026 Trump account contributions will be treated as completed gifts to A, B, and C that are not future interests in property.
Example 22: Same facts as Example 1 above, but instead, Taxpayer’s cash gift to C in 2026 is $14,500, the safe harbor is now not met because Taxpayer’s total gifts to C during calendar year 2026 exceed the annual per donee gift tax exclusion of $19,000; requirement 3 of the safe harbor above.
Accordingly, in this case the Taxpayer must file a gift tax return for calendar year 2026 reporting all 2026 gifts, and must report the Trump account contributions to A, B, and C as gifts of future interests.
Why Does Rev. Proc. 2026-25 Matter?
Generally, an individual must file a gift tax return if the individual makes gifts to a recipient exceeding the annual exclusion amount, makes a gift of a future interest even if the amount is within the annual exclusion, or makes certain other reportable transfers. For gift tax purposes, the annual exclusion generally applies only to gifts of a present interest. A present interest is generally an unrestricted right to the immediate use, possession, or enjoyment of property. By contrast, a gift of a future interest generally does not qualify for the annual exclusion. For 2026, the annual per-donee gift tax exclusion amount is $19,000.
Rev. Proc. 2026-25 creates a safe harbor where a donor who meets all safe harbor conditions generally does not need to file a gift tax return solely because of Trump Account contributions; the safe harbor allows the gift tax exclusion to be applied for applicable contributions.
The safe harbor is intended to turn what could otherwise be a burdensome reporting issue into a no-filing result, but only for donors whose overall gift activity for the year is straightforward and stays fully within the annual exclusion limits. The relief is not automatic, i.e., a donor must satisfy all the IRS’s conditions for the calendar year to rely on the safe harbor and avoid filing a gift tax return solely due to Trump Account contributions.
If you have any questions on the tax implications of Trump Account contributions, please consult with your Topel Forman advisor.
[1] See Rev. Proc. 2026-25 pages 7-8.
[2] Id.
