IRS says Trump Account contributions will not trigger annual gift tax reporting requirements
Parents, guardians and others who contribute to a Trump Account will not be required to file a gift tax return, the IRS and Treasury Department said Monday.
TL;DR
- Contributions to Trump Accounts are now exempt from gift tax reporting under new IRS guidance.
- Individuals can contribute up to $5,000 annually to a Trump Account without filing a gift tax return.
- This relief aims to reduce the burden on friends and family wishing to contribute to Trump Accounts.
- Contributions will be treated as completed gifts eligible for the annual per-donee gift tax exclusion.
- Trump Accounts, also known as 530A accounts, are for U.S. children under 18.
- A $1,000 pilot program contribution is provided by the Treasury Department for babies born from 2025 through 2028.
- Over 6 million children have already been signed up for Trump Accounts.
- Accounts can be opened via IRS Form 4547 or TrumpAccounts.gov.