The IRS has issued Revenue Procedure 2026-25, providing important gift tax guidance for individuals who contribute money to Trump Accounts.

The new guidance establishes a safe harbor under which qualifying contributions to Trump Accounts will be treated as completed gifts eligible for the annual gift tax exclusion. When all requirements are met, donors generally will not need to file Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, solely because they contributed to a Trump Account.

What Is a Trump Account?

Trump Accounts are a new type of individual retirement account established under Internal Revenue Code § 530A for eligible individuals under age 18.

During the account’s growth period, special rules apply to contributions, investments, distributions, and reporting.

Individuals, including parents, grandparents, relatives, and friends, may contribute to a child’s Trump Account. In general, these individual contributions count toward the account’s $5,000 annual contribution limit.

Because Trump Accounts restrict a beneficiary’s ability to access the funds during the growth period, questions arose over whether contributions would qualify as present-interest gifts eligible for the annual gift tax exclusion.

Revenue Procedure 2026-25 addresses that concern.

What Does the New Safe Harbor Do?

Under the safe harbor, qualifying cash contributions to a Trump Account will be treated as:

• Completed gifts for federal gift tax purposes;
• Not gifts of future interests; and
• Gifts eligible for the annual gift tax exclusion under IRC § 2503(b).

This is significant because gifts of future interests ordinarily do not qualify for the annual gift tax exclusion.

For 2026, the annual gift tax exclusion is $19,000 per recipient.

When Can a Donor Use the Safe Harbor?

A donor must satisfy the requirements contained in Revenue Procedure 2026-25.

Among other requirements, the donor’s total gifts to the beneficiary during the year—including contributions to the beneficiary’s Trump Account—generally cannot exceed the annual gift tax exclusion amount.

For 2026, that means the donor’s total gifts to the beneficiary generally cannot exceed $19,000 to qualify under this part of the safe harbor.

The donor also must not have other gifts or circumstances that independently require the filing of a gift tax return, and the contributions cannot result in gift tax or generation-skipping transfer (GST) tax liability after applying available exclusions and exemptions.

$5,000 Contribution Limit vs. $19,000 Gift Tax Exclusion

It’s important not to confuse these two limits.

The $5,000 limit generally governs how much may be contributed to a Trump Account during the year from sources that count toward the account’s annual contribution limit.

The $19,000 annual gift tax exclusion for 2026, meanwhile, is a federal gift tax rule that generally determines how much an individual donor may give to a recipient without using the donor’s lifetime gift and estate tax exemption.

For example, suppose a grandparent contributes $5,000 to a grandchild’s Trump Account in 2026 and gives the same grandchild another $10,000 in cash during the year.

The grandparent has made $15,000 of gifts to the grandchild for purposes of the annual gift tax exclusion. Assuming the other requirements of the safe harbor are satisfied, the total remains below the $19,000 annual exclusion.

Does the Donor Have to File Form 709?

One of the biggest benefits of the safe harbor is reduced tax reporting.

If all of the requirements are satisfied, an individual donor generally will not have to file Form 709 solely to report qualifying contributions to a Trump Account.

This can be particularly helpful for parents, grandparents, and other family members who want to contribute to a child’s account without creating an additional gift tax filing requirement merely because of the account’s restrictions.

However, the safe harbor does not eliminate Form 709 filing requirements that arise for other reasons.

A donor who makes other reportable gifts during the year may still be required to file Form 709.

What About Generation-Skipping Transfer Tax?

Revenue Procedure 2026-25 also addresses the generation-skipping transfer (GST) tax treatment of qualifying Trump Account contributions.

When the requirements of the safe harbor are satisfied, the IRS will treat qualifying contributions as completed gifts that are not future interests for purposes of the applicable gift and GST tax rules.

This may be particularly relevant when grandparents contribute to Trump Accounts established for their grandchildren.

Recordkeeping Is Still Important

Even when Form 709 isn’t required, donors relying on the safe harbor should maintain adequate records.

Records should generally document contributions to the Trump Account and other gifts made to the same beneficiary during the year so the donor can demonstrate that the requirements of the safe harbor were satisfied.

The Bottom Line

Revenue Procedure 2026-25 removes an important area of uncertainty for individuals who want to contribute to Trump Accounts.

Qualifying contributions can be treated as completed gifts eligible for the annual gift tax exclusion rather than gifts of future interests. If all safe harbor requirements are satisfied, donors generally will not have to file Form 709 solely because they made those contributions.

For families planning to use Trump Accounts as part of a longer-term savings or gifting strategy, however, it’s important to distinguish between the account’s annual contribution limit and the federal gift tax annual exclusion.