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Question

What is the annual gift tax exclusion, and why does it matter for Trump Accounts?

Answer

The annual gift tax exclusion ($19,000 per recipient in 2026) lets you give up to that amount per person per year without filing a gift tax return. Because Trump Account funds aren’t accessible until the beneficiary turns 18, there was concern that contributions would be treated as future interest gifts ineligible for this exclusion — a concern Rev. Proc. 2026-25 now resolves for qualifying donors.

Related FAQs

Can I contribute to Trump Accounts for multiple children without triggering a gift tax return?

Should high-net-worth families contribute to both 529 plans and Trump Accounts?

How does the gift tax treatment of Trump Account contributions compare to 529 plan contributions?
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Last Updated July 2, 2026
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