The U.S. Department of the Treasury and the Internal Revenue Service issued guidance on Monday stating that contributions to Trump Accounts are not subject to gift tax reporting under safe harbor rules. This guidance means that parents, guardians, grandparents, and others can contribute up to $5,000 annually in after-tax dollars to a Trump Account without filing a gift tax return.

The IRS stated that Trump Account cash contributions will be treated as completed gifts that are not gifts of future interests in property. The annual per-donee gift tax exclusion applies to these contributions, which is $19,000 per recipient for 2026. To qualify for the annual gift tax exclusion, gifts must be of "present interest," meaning the recipient has immediate access.

"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," IRS Chief Executive Officer Frank Bisignano said. He added, "The relief granted will reduce the potential burden placed on friends and family who want to put money into a Trump account."

Trump Accounts, also known as 530A accounts, are accessible to any U.S. child under 18 with a Social Security number. The official launch of Trump Accounts is scheduled for July 4. Parents and guardians can open a Trump Account for a beneficiary by filling out IRS Form 4547 either with their tax return or on TrumpAccounts.gov.

More than 6 million American children have been signed up for Trump Accounts, according to a recent Treasury Department tally. Each Trump Account includes a one-time $1,000 pilot program contribution from the Treasury Department for babies born from 2025 through 2028.

Lawrence Pon, a CFP and certified public accountant, said in a podcast interview that the measure would remove paperwork burdens on taxpayers. "The IRS normally gets about 300,000 gift tax returns per year and if Trump Account contributions were subject to this requirement, the number of returns will be in the millions," Pon said.