With nearly 6 million elections to open a Trump Account received as of early June and with the program’s official launch happening on Saturday, July 4, the Department of the Treasury and the Internal Revenue Service today issued Revenue Procedure 2026-25 providing a gift tax reporting safe harbor for certain contributions to Trump accounts created under the Working Families Tax Cuts.
“The relief granted will reduce the potential burden placed on friends and family who want to put money into a Trump account.”
IRS CEO Frank J. Bisignano
Under this safe harbor, if certain requirements are met, contributions made by individual donors to Trump accounts in a given year will not be subject to gift tax reporting requirements for that year.
“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,” said IRS Chief Executive Officer Frank J. Bisignano. “The relief granted will reduce the potential burden placed on friends and family who want to put money into a Trump account.”
Today’s notice says contributions to Trump accounts will be treated as completed gifts that are not gifts of future interests in property and to which the annual per-donee gift tax exclusion applies. As a result, taxpayers within the scope of section 4 of this revenue procedure will not be required to file gift tax returns reporting such contributions.
Trump accounts may receive contributions from nonprofits, governments, employers, and individuals. During the growth period, a Trump account is subject to an annual contribution limit of $5,000, adjusted for inflation after 2027. This annual limit does not apply to the $1,000 Trump account pilot program contribution, qualified general contributions (which are funded by nonprofits and certain governmental entities), or qualified rollover contributions, but does apply to any other contribution (including contributions from employers).
Today’s gift tax reporting safe harbor comes on the heels of the Department of Labor issuing guidance June 18 clarifying that employer contributions made to a minor child’s Trump Account will not generally be subject to Title I of the Employee Retirement Income Security Act (ERISA).
Parents, guardians, and other authorized individuals, can use IRS Individual Online Account to complete Form 4547, Trump Account Election(s) to elect to open the initial Trump account for a child with a Social Security number if the election to open the initial Trump account is made before the calendar year in which the child turns age 18. In addition, if that child is a U.S. citizen born in 2025 through 2028, the parent or other individual who qualifies to do so may check a box on Form 4547 to elect a $1,000 pilot program contribution to the child’s Trump account.
Visit trumpaccounts.gov for more information on Trump Accounts. For more information on the provisions of the new legislation, see Working Families Tax Cuts Provisions on IRS.gov.
SEE ALSO:
• Trump Accounts Not Employee Pension Benefit Plans: DOL Guidance
• Trump Accounts App Now Live in Advance of Program’s July 4 Launch