Gift Tax Considerations for Trump Accounts

Recently, the IRS issued guidance about the gift tax considerations for the new Trump accounts.

Trump accounts under Internal Revenue Code §530A are effective for the 2026 and later tax years and are for children under the age of 18 as of the close of the calendar year. We have discussed these accounts in our prior post on February 17, 2026, and December 9, 2025.

Parents and guardians that wish to make the election to open a Trump account and to elect to receive the $1,000 contribution from the U.S. federal government that is available for children born during 2025 through 2028 may have already done so as part of their 2025 income tax returns. If not, they can now submit Form 4547, Trump Account Elections, using an individual online account at the IRS website or through the Trump Account app discussed at: https://trumpaccounts.gov/.

In Revenue Procedure 2026-25, the IRS indicates that contributions to a Trump account will be treated as a completed gift, not as a gift of a future interest. As a result, such contributions will be eligible for the annual gift tax exclusion ($19,000 for the 2026 tax year).

Since annual contributions to these new accounts are limited to $5,000 per year, such contributions alone will not cause a contributor to be required to file a federal gift tax return. (A gift tax return would only be required if the contributor also makes separate gifts to the same child that is the beneficiary of the Trump account, and the total of all such combined gifts exceeds $19,000.)

In our seminars this December and January, we will discuss strategies and logistics related to the new Trump accounts, along with the many other new provisions effective in 2026 from OBBBA.

Are you registered for one of our upcoming seminars in December and January? If you are not already registered, register here so you’ll be fully prepared with what you need to know.