Tax Planning
Gift-Giving to Trump Accounts: New Safe Harbor for Donors in 2026
Thanks to Revenue Procedure 2026-25, individuals contributing to Trump Accounts may avoid filing gift tax returns if their gifts qualify under safe harbor rules.
By NomadicTax Research Team • 5-8 min read • July 18, 2026
## What Are Trump Accounts & Relevant Law?
The **One, Big, Beautiful Bill Act (OBBB Act)** (Public Law 119-21, July 4, 2025) added section 530A to the Internal Revenue Code, establishing **Trump Accounts**. These are savings accounts that parents, guardians, or authorized individuals can open for minors, intended to simplify the transfer of funds to children. ([irs.gov](https://www.irs.gov/irb/2026-29_irb?utm_source=openai))
Originally, contributions to Trump Accounts were treated as gifts. Donors had to worry about annual gift exclusions, future interest rules, and even filing gift tax returns. To address growing concerns, the IRS issued **Revenue Procedure 2026-25**, providing a safe harbor for certain donors. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-provide-safe-harbor-for-certain-contributions-to-trump-accounts-under-the-working-families-tax-cuts?utm_source=openai))
## Safe Harbor Requirements & Benefits
If you meet all requirements under Rev. Proc. 2026-25, **Trump Account contributions** will be treated as **completed gifts that are not future interests**, and will qualify for the **annual per-donee gift exclusion**, meaning:
- **No gift tax return** (Form 709) requirement for those contributions under certain thresholds.
- Annual per-donee exclusion for 2026 is **$19,000**, indexed for inflation, in addition to your lifetime gift/estate tax exclusion. ([irs.gov](https://www.irs.gov/irb/2026-29_irb?utm_source=openai))
To qualify, you must satisfy each of these:
1. You are an **individual** donor.
2. Contributions are **cash** (or cash equivalents) and made to Trump Accounts before beneficiary turns 18.
3. Total gifts to each account/beneficiary (including proper gifts) do not exceed the **annual exclusion amount** ($19,000 in 2026).
. . . and there is no other gift tax return required for other gifts or as a result of contributions. ([irs.gov](https://www.irs.gov/irb/2026-29_irb?utm_source=openai))
## Example Scenario
Mary gives $10,000 in cash to her daughter’s Trump Account and $5,000 to another child’s Trump Account in 2026, with no other gifts made during the year. Because she meets the safe harbor requirements, neither of those contributions require reporting in a gift tax return—and they are qualified for the exclusion.
But if she also gives $10,000 outside of Trump Accounts to one of the same children and the total exceeds $19,000, she must file Form 709, and the excess may be subject to gift tax.
## Practical Advice and Warnings
- Track **all** gifts to each recipient during the year (inside and outside Trump Accounts) to stay below the exclusion limit.
- Use **cash, check, electronic transfer**—non-cash gifts or future interests may break safe harbor.
- Keep proper documentation: date, donor and recipient, amount, and confirm beneficiary is under 18.
- Be aware: safe harbor relief **does not apply** if gifts generate gift or GST tax liability, or other gift-tax reporting obligations beyond the exclusion.
## Summary
Revenue Procedure 2026-25 provides a welcome break for many donors in 2026. If you meet the criteria, Trump Account contributions up to the annual exclusion can avoid gift-tax reporting and complications—but it's essential to understand the rules and limits.