The U.S. Department of the Treasury and the Internal Revenue Service (IRS) have issued new guidance intended to make it easier for individuals to support children through Trump Accounts. Created under the Working Families Tax Cuts legislation, these tax-advantaged savings accounts are designed to help families build long-term financial resources for children. Revenue Procedure 2026-25 establishes a gift tax reporting safe harbor that removes certain reporting requirements for qualifying contributions made by individual donors.

Under the safe harbor, eligible contributions will not be subject to gift tax reporting requirements for the year in which they are made. This relief responds to concerns from taxpayers who wanted to contribute to accounts for family members but were hesitant about taking on additional filing obligations. IRS Chief Executive Officer Frank J. Bisignano said the change is intended to reduce administrative burdens for relatives and friends who wish to help fund a child’s future.

Families may establish Trump Accounts through the IRS Individual Online Account system. A parent, guardian, or other authorized individual can begin the process by filing Form 4547, Trump Account Election(s). Eligible U.S. citizen children born between 2025 and 2028 may also qualify for a $1,000 federal pilot program contribution when an account is opened, giving families an additional opportunity to start saving early.

Treasury and the IRS have also proposed regulations that would permit employers to contribute up to $2,500 annually, tax-free, to Trump Accounts for employees or their dependents through employer-sponsored contribution programs. The proposal includes plan requirements, reporting responsibilities, and nondiscrimination rules designed to make the benefit broadly available rather than favoring highly compensated employees. If finalized, this framework could offer employers a meaningful new benefit while helping families take positive steps toward building long-term savings for their children.