Trump Account Gift Tax Trap Is Gone

Trump accounts won’t be available until July 4 (one year after the law was signed).

Unlike 529 plans, current law does not explicitly treat contributions to Trump Accounts as "present interest" gifts, meaning donations are future interests, triggering gift tax filing requirements even for small contributions.

Only gifts of a “present interest” are eligible for the $19,000 annual gift tax exclusion.

IRS Rev. Proc. 2026-25: Transfer Tax Safe Harbor for Certain Contributions to Trump Account released June 29, 2026 provides relief:

Basically gifts to Trump accounts will be treated as gifts of a present interest and therefore no gift tax return is needed. (Similar to 529 plans) if all of the following apply

.01  Requirements.

(1)          Taxpayer is an individual;

(2)          The only taxable gifts made by the taxpayer during the calendar year are cash contributions (in the form of cash, check, money order, or electronic funds transfer) to one or more Trump accounts, each made before the calendar year in which the account beneficiary attains age 18;

(3)          The taxpayer’s total gifts during the calendar year to each individual who is an account beneficiary, including contributions to that account beneficiary’s Trump account, do not exceed the annual exclusion amount under section 2503(b) ($19,000 for 2026);

(4)          Such contributions to Trump accounts made during the calendar year do not generate for that calendar year either a gift or GST tax liability, after application of the taxpayer’s remaining applicable credit amount against the gift tax, or remaining GST exemption; and Disregarding the Trump account contributions described in section 4.02(2) of this revenue procedure, no gift tax return is required to be filed, and no gift tax return is otherwise filed, for that calendar year by or on behalf of the taxpayer, whether for GST tax, portability, or other purposes.