Trump account gifts and the ‘future interest’ problem
IRC § 530A established Trump accounts as a new type of tax-favored individual retirement account (IRA) to help children start investing early. However, because the rules restrict a child’s access to the funds until they turn 18, contributions raised a technical gift tax concern.
Under IRC § 2503(b), gifts of a “future interest” in property do not qualify for the annual gift tax exclusion, which is $19,000 for 2026. This meant any contribution to a Trump account, regardless of size, could have been considered a future interest gift that required the donor to file Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return.
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