IRS Hands “Trump Account” Donors a Gift Tax Break: A Look at Rev. Proc. 2026-25
If you have been wondering whether contributing to a child's new "Trump account" could saddle you with a gift tax return, the IRS just delivered welcome news. In Rev. Proc. 2026-25, the Treasury Department and the IRS established a transfer tax safe harbor for individual donors who fund these accounts, treating qualifying contributions as completed gifts that are not gifts of future interests and to which the annual per-donee gift tax exclusion applies. The practical payoff: donors within the safe harbor will not have to file a gift tax return to report those contributions.