Section 530A "Trump Accounts" Are Now Open - What the New IRS Guidance Means for Your Gifting Strategy

ARTICLE | August 03, 2026

 A new type of tax-advantaged savings account is now available for children, and the IRS has issued important guidance to help simplify the gifting process for contributors. Section 530A accounts, commonly known as "Trump accounts," became available for contributions on July 4, 2026, as a result of the One Big Beautiful Bill Act. These custodial accounts allow parents and guardians to contribute up to $5,000 annually on behalf of a child under age 18, with earnings growing tax-deferred until the account converts to a traditional IRA when the child reaches adulthood. In late June, the IRS issued Revenue Procedure 2026-25, which introduced a safe harbor allowing qualifying contributions to be treated as completed gifts, potentially sparing contributors from having to file a gift tax return. However, the rules come with conditions, and not every contributor will qualify. Understanding how these accounts work, what the new guidance covers, and when it may still make sense to file a gift tax return are all critical considerations.

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