IRS Issues Transfer Tax Safe Harbor for Contributions to Trump Accounts

Short summary

The IRS issued Revenue Procedure 2026-25, establishing a transfer tax safe harbor treating qualifying Trump Account contributions as present-interest gifts eligible for the annual exclusion. The safe harbor is narrow: any other taxable gift, Form 709 filing, or exceeding the annual exclusion disqualifies it entirely. Contributions outside the safe harbor may still be treated as future-interest gifts requiring reporting. Trump Accounts began accepting contributions on July 4, 2026.

• •IRS safe harbor treats qualifying Trump Account contributions as annual-exclusion present-interest gifts
• •Safe harbor is disqualified by any other taxable gift or Form 709 filing in the same year
• •Contributions outside safe harbor may still be classified as future-interest gifts

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