Trump accounts may start taking stock gifts, reports say

X Facebook WhatsApp

With the July 4 rollout of Trump Accounts little more than a month away, federal officials and private donors are debating whether businesses and philanthropists should be allowed to donate stock — not just cash — to seed the new child savings program. The change could accelerate funding but also reshape the accounts’ investment profile and would likely require legal changes before it could take effect.

Altimeter Capital founder Brad Gerstner, one of the initiative’s backers, reacted on X this week as media outlets reported talks about allowing noncash contributions. He and other proponents say expanding the types of donations could unlock large gifts; regulators and financial advisers warn it could also expose accounts to greater volatility.

How the accounts are set up now

Under current Treasury guidance, contributions to Trump Accounts — formally created under Section 530A of the tax code — are limited to cash. The money is slated to be invested in a broad U.S. equity index vehicle chosen by the program, not in individual company stocks.

That design is deliberate: officials have emphasized a conservative, low-cost approach intended to build long-term savings rather than facilitate speculative trading by children’s custodians.

Launch date: July 4, 2026.

Eligibility: All U.S. children with Social Security numbers; newborns in 2025–2028 receive a $1,000 Treasury deposit.

Current contribution types: Cash only from parents, guardians, employers, qualifying charities and state/local governments.

Investment rule: Program funds directed to a broad U.S. index fund rather than individual equities.

Enrollment so far: Treasury reports roughly 5.5 million children signed up ahead of the launch.

Department of Labor officials signaled this week they are coordinating with the Treasury to study widening the set of eligible contributions. Daniel Aronowitz, who runs the Employee Benefits Security Administration, told a Washington audience the agency is examining options that could allow employer and other noncash support to flow into the accounts.

Why donors want to give stock

Donating appreciated shares is a common tax strategy for wealthy donors. When a donor gives long-held, appreciated stock to a charity, they typically receive a deduction for the fair market value and avoid paying capital gains taxes that would apply on a sale.

Under current rules, someone who wanted to convert shares into a gift to a Trump Account would first need to sell the stock and donate the cash, potentially triggering federal capital gains taxes — generally up to about 20% plus a 3.8% net investment income tax for high earners.

Allowing direct stock gifts into the accounts would preserve that tax benefit, but it would also create operational and legal questions. Tax experts say Congress would probably have to amend Section 530A to permit noncash contributions into these accounts.

Investment and policy risks

Financial planners caution that accepting stock donations could change the risk profile of accounts meant for steady accumulation. The program’s current restriction to low-cost index investing was intended to limit speculative bets on individual companies.

Ben Henry-Moreland, a certified financial planner, said rolling back the index-only requirement would “encourage speculative risk-taking in accounts that are supposed to be for long-term savings,” raising the possibility of larger short-term losses for children’s balances.

Proponents argue that mechanisms could be put in place so donated shares would be liquidated and converted into the program’s index fund, preserving diversification while still delivering tax advantages to donors. Regulators and program administrators will need to resolve whether that approach is feasible without undermining the program’s investment safeguards.

What’s next

Lawmakers and regulators have only weeks to settle the rules before the official launch. Treasury officials have pushed for philanthropic and state-level partners to help seed accounts under a so-called “50-state” pledge, and some states and private funders have already committed to contributions or matching programs.

Whether Congress will move to allow stock donations — and whether regulators will permit employers to make contributions on behalf of workers’ children — remains uncertain. Stakeholders from nonprofit funders to corporate HR teams are watching for guidance that could affect how quickly the accounts get funded and how sustainable their early balances will be.

For now, families enrolling their children should expect accounts to be funded with cash and invested in a broad-market index fund unless and until formal rule changes are announced.