IRS provides safe harbor for certain contributions to Trump accounts
July 03, 2026
Treasury and the IRS recently provided a safe harbor for gift tax reporting on certain contributions to Trump accounts created under the Working Families Tax Cuts.
Under this safe harbor, if certain requirements are met, contributions made by individual donors to Trump accounts in a given year will not be subject to gift tax reporting requirements for that year, the IRS said.
Trump accounts are a new type of individual retirement account for eligible children under Sec. 530A, which was added to the Internal Revenue Code by H.R. 1, known as the One Big Beautiful Bill Act. The IRS said it has already received nearly 6 million elections to open a Trump account.
“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,” said IRS CEO Frank Bisignano. Read more.
