As we approach the July 4, 2026 launch of Trump accounts – a new form of traditional individual retirement account created under the One Big Beautiful Bill Act (OBBBA) – questions have emerged regarding the gift tax treatment of personal contributions to these accounts.
What are Trump Accounts?
As discussed in our previous Trump Accounts blog post, there are five potential sources of funding for Trump accounts. For gift tax purposes, particular attention should be given to contributions made by parents, grandparents, other family members or even unrelated individuals on behalf of the account beneficiary.
Why Gift Tax Treatment Is Not Yet Clear
At first glance, these contributions may seem straightforward—after all, Trump accounts are designed to help beneficiaries save for the future and build long-term financial security. However, the gift tax implications are not yet clearly defined under current law. Specifically, there is currently no explicit guidance confirming how personal contributions to Trump accounts should be treated for gift tax purposes. As a result, contributors may be required to file a gift tax return (Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return) to report such transfers.
Present Interest vs. Future Interest Gifts
The key issue centers on whether these contributions qualify as a present interest or a future interest gift.
What Qualifies as a Present Interest Gift?
A present interest gift provides the recipient with an immediate and unrestricted right to use, access, or enjoy the property and income it generates. Under current law, present interest gifts qualify for the annual exclusion ($19,000 per recipient for 2026), and no gift tax return is required if the gift does not exceed that amount.
Why Trump Account Contributions Are Likely Future Interest Gifts
In contrast, beneficiaries of Trump accounts cannot access the funds until age 18. Because they do not have immediate access, control or enjoyment of the property, personal contributions by individuals to Trump accounts likely constitute a future interest gift. Regardless of the amount transferred, future interest gifts do not qualify for the annual exclusion and generally require the filing of Form 709 reporting the gift. In doing so, the donor will either use a portion of his or her lifetime exemption to cover the gift or pay gift tax (if the donor has no remaining lifetime exemption). In addition, the GST tax could also apply if the beneficiary is a skip person. In summary, absent clear statutory language or IRS guidance to the contrary, personal contributions to Trump accounts are currently presumed to be future interest gifts that could trigger these filing issues.
What We Recommend Until IRS Guidance Is Issued
Practitioners are actively encouraging the IRS to issue formal guidance addressing the uncertainty of how contributions to Trump accounts should be treated for gift tax purposes. Until such guidance is released, our recommendation is that taxpayers proceed with caution and consider delaying personal contributions to Trump accounts to avoid unintended gift tax reporting requirements.
Questions About Trump Accounts? Contact BRC CPAs
If you are considering funding a Trump account, please reach out to our tax team with any questions.