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Safe Harbor Provided for Certain Trump Account Contributions

The IRS and Treasury Department have issued new guidance designed to make it easier for individuals and employers to contribute to Trump Accounts while reducing concerns about gift tax reporting.

The guidance provides a safe harbor for certain individual contributions and clarifies how employers can contribute to employees’ or their dependents’ Trump Accounts.

What does this mean for employers?

Employers can contribute up to $2,500 annually to an employee’s Trump Account or the Trump Account of the employee’s dependent. These contributions generally are not included in the employee’s taxable income.

For employers considering Trump Accounts as an employee benefit, the new guidance can help reduce uncertainty around the tax treatment and reporting of contributions. Payroll and benefits teams should establish procedures for accurately tracking and processing these contributions.

How does the safe harbor work?

The safe harbor applies to certain contributions made by individual donors. When specific requirements are met, qualifying contributions generally will not need to be reported on a federal gift tax return.

For 2026, the annual gift tax exclusion is $19,000 per recipient. The safe harbor is intended to simplify compliance for individuals who make qualifying contributions to Trump Accounts and otherwise meet the requirements.

What employers should know

Trump Accounts are a new benefit, and additional guidance may be issued as the program develops. Employers considering contributions should review the requirements and work with their payroll and tax professionals to ensure contributions are handled correctly.

For businesses, the new guidance provides greater clarity around an emerging employee benefit and may make it easier to consider Trump Account contributions as part of a broader compensation and benefits strategy.