IRS Announces Gift Tax Safe Harbor for Trump Account Contributions

Trump account contributions do not qualify for the annual gift tax exclusion (currently, $19,000) because the exclusion applies only to present-interest gifts, meaning gifts that can be immediately accessed and used. The OBBB did not exempt the contributions in the same manner as Section 529 plan contributions were exempted when the statute was created. As such, many worried that Trump account contributions would trigger gift tax reporting obligations. Via Revenue Procedure 2026-25, the IRS acted to create a gift tax safe harbor for contributions made on behalf of children before they reach age 18. The IRS found the safe harbor to be necessary because the costs of reporting would outweigh anticipated financial benefits--and millions of additional gift tax return filings would create a significant and unnecessary burden for the IRS. For more information on the gift tax filing requirements, visit Tax Facts Online. Read More: Link to Q915. Note: Q is updated.