The US Treasury and IRS are now allowing large gifts of publicly traded stock to flow into TrumpAccounts, the government-backed investment accounts designed to give American children a financial head start.
The accounts, which officially began accepting enrollments on July 4, 2026, provide eligible newborns with a one-time $1,000 seed contribution from the Treasury. Annual contributions are capped at $5,000 and indexed for inflation starting after 2027. The accounts require investments to be placed primarily in broad US equity index funds.
How the stock donation mechanism works
The IRS has established a safe harbor rule, announced around June 29, 2026, that relieves donors from gift tax reporting requirements for qualifying contributions to these accounts.
The stock donation pathway is particularly interesting for high-net-worth individuals sitting on large unrealized gains. Rather than selling shares, paying capital gains, and then donating the after-tax proceeds, they can transfer stock directly into the accounts. The shares would then presumably be liquidated and reinvested into the required broad equity index funds, but the tax efficiency for the donor remains.
