§ 1.530A-7T Qualified — 26 C.F.R. Part 1

(a) Overview. This section provides rules for qualified general contributions and qualified stock contributions. Paragraph (b) of this section provides definitions related to qualified general contributions and qualified stock contributions. Paragraph (c) of this section provides rules specific to qualified general contributions. Paragraph (d) of this section provides rules specific to qualified stock contributions. Paragraph (e) of this section provides rules for determining whether a general funding contribution made by a section 501(c)(3) organization will further a charitable purpose. Paragraph (f) of this section provides the applicability and expiration dates of this section.

(b) Definitions. For purposes of section 530A and the regulations thereunder, the following definitions apply—

(1) Approved class. The term approved class means a class that consists of not less than 5,000 account beneficiaries and that includes all account beneficiaries who—

(i) Are still in their growth period when the contribution is made to the Trump account;

(ii) Reside in one or more States or other qualified geographic areas specified by the terms of and on the record date(s) provided in the Treasury acceptance agreement with respect to the general funding contribution; and

(iii) Were born in one or more calendar years specified by the terms of the Treasury acceptance agreement with respect to the general funding contribution.

(2) Eligible donor. The term eligible donor means—

(i) An entity described in section 170(c)(1) (other than a possession of the United States or a political subdivision thereof) or an Indian Tribal government, or

(ii) An organization described in section 501(c)(3) and exempt from tax under section 501(a).

(3) General funding contribution. The term general funding contribution means a contribution that—

(i) Is made by an eligible donor; and

(ii) Specifies a qualified class of account beneficiaries to whose Trump accounts such contribution is to be distributed. For this purpose, an approved class is treated as a qualified class.

(4) Minimum holding period requirement. The term minimum holding period requirement means the period of time described in paragraph (d)(3) of this section during which the qualified stock may not be sold or otherwise disposed of.

(5) Qualified class. The term qualified class means any of the following classes of account beneficiaries—

(i) All account beneficiaries who are still in their growth period when the contribution is made to the Trump account.

(ii) All account beneficiaries who—

(A) Are still in their growth period when the contribution is made to the Trump account; and

(B) Reside in one or more States or other qualified geographic areas specified by the terms of and on the record date(s) provided in the Treasury acceptance agreement with respect to the general funding contribution.

(iii) All account beneficiaries who—

(A) Are still in their growth period when the contribution is made to the Trump account; and

(B) Were born in one or more calendar years specified by the terms of the Treasury acceptance agreement with respect to the general funding contribution.

(6) Qualified general contribution. The term qualified general contribution means a contribution made by the Secretary of the Treasury or the Secretary's delegate pursuant to a general funding contribution from an eligible donor and distributed to the Trump accounts of a qualified class of account beneficiaries in the manner described in paragraph (c) of this section. A qualified general contribution also includes a contribution made by the Secretary pursuant to a general funding contribution that specifies an approved class to whose Trump accounts the contribution is to be distributed, and otherwise satisfies the requirements of paragraph (c) of this section (approved class contribution). A qualified general contribution also includes a qualified stock contribution.

(7) Qualified geographic area. The term qualified geographic area means a geographic area in which not less than 5,000 account beneficiaries eligible to receive the applicable qualified general contribution reside as of the record date and that is designated by the Secretary as a qualified geographic area.

(8) Qualified stock—(i) In general. The term qualified stock means stock that meets the requirements in paragraph (b)(8)(ii) of this section.

(ii) Requirements for qualified stock—(A) Domestic corporation. The issuer of the stock is a corporation that is domestic within the meaning of section 7701(a)(3) and (4).

(B) Publicly traded. The stock is listed on a national securities exchange that is registered under section 6 of the Securities Exchange Act of 1934 (15 U.S.C. 78f). See § 1.1092(d)-1(b)(1)(i).

(C) Transferable without pre-existing restrictions. The stock is not subject to any pre-existing transfer restriction, such as being a restricted security as defined in 17 CFR 230.144(a)(3). For purposes of this paragraph (b)(8)(ii)(C), the minimum holding period requirement in paragraph (d)(3) of this section is not a pre-existing transfer restriction.

(D) Satisfaction of the requirements for qualified stock. To be treated as qualified stock, stock must satisfy the requirements in paragraphs (b)(8)(ii)(A) through (C) of this section at the time of contribution to the Treasury Department as part of the general funding contribution. Following the contribution, the stock will continue to be treated as qualified stock so long as the requirement in paragraph (b)(8)(ii)(B) of this section is satisfied.

(9) Qualified stock contribution. The term qualified stock contribution means a qualified general contribution of qualified stock that otherwise satisfies the requirements of paragraphs (c) and (d) of this section.

(10) Record date. The term record date means the date(s) specified in a Treasury acceptance agreement as of which the Secretary determines the account beneficiaries eligible to receive a qualified general contribution.

(11) Treasury acceptance agreement. The term Treasury acceptance agreement means the written agreement or other documentation under which the Secretary accepts a general funding contribution as described in paragraph (c)(2) of this section.

(c) Qualified general contributions—(1) In general. All qualified general contributions must meet the requirements of paragraphs (c)(2) through (4) of this section.

(2) Made by the Secretary pursuant to a general funding contribution—(i) In general. A qualified general contribution will only be made by the Secretary pursuant to a Treasury acceptance agreement, as described in paragraph (c)(2)(iv) of this section, that has been validly entered into by the eligible donor and the Secretary, and is made in accordance with the terms of that agreement.

(ii) Request to make a general funding contribution. An eligible donor may request to make a general funding contribution on the form prescribed by the Secretary or through an electronic application or web page made available by the Secretary.

(iii) Treasury Department approval. The Secretary will review the request and may, in the Secretary's sole discretion, approve the request after determining that the request satisfies the requirements of this section and considering objective criteria, including the cost of implementation and operational feasibility of the contribution. If the request includes qualified stock, then the Secretary will consider the cost of transferring and administering the shares of qualified stock.

(iv) Treasury acceptance agreement. The Treasury acceptance agreement must identify the eligible donor, the aggregate funding amount or funding commitment, the qualified class, the record date or dates, whether the identity of the eligible donor will be reported to account beneficiaries, and any other information required by the Secretary. If the general funding contribution consists of qualified stock, the Treasury acceptance agreement must also include information about the name and employer identification number (EIN) of the issuer of the qualified stock, the number of shares of qualified stock that will be contributed, and any other information required by the Secretary.

(3) Made to a Trump account of an account beneficiary in the qualified class of account beneficiaries—(i) In general. A qualified general contribution is made to the Trump account of each account beneficiary in the qualified class of account beneficiaries specified in the Treasury acceptance agreement. The qualified class for a general funding contribution is the qualified class identified in the Treasury acceptance agreement. If the qualified class proposed in the eligible donor's request differs from the qualified class identified in the Treasury acceptance agreement, the qualified class identified in the Treasury acceptance agreement controls.

(ii) Approved class contributions. For purposes of section 530A(f)(1)(B), an approved class used for an approved class contribution is treated as a qualified class.

(iii) Manner of contribution. A qualified general contribution must be made in cash to a Trump account, except in the case of qualified stock contributed as part of a qualified stock contribution.

(4) Is in an equal amount—(i) In general. A qualified general contribution must be made in an equal amount to the Trump account of each account beneficiary in the qualified class. Thus, every account beneficiary in the qualified class must receive the same amount, which may be provided in cash, shares of qualified stock, or a combination of cash and shares. Details regarding the form and amount of the qualified general contributions will be addressed in the Treasury acceptance agreement. The amount of the qualified general contribution made to the Trump account of each account beneficiary is determined based on the ratio of—

(A) The amount of the general funding contribution allocated under the Treasury acceptance agreement to the applicable record date; to

(B) The number of account beneficiaries in the qualified class who are determined under paragraph (c)(4)(iv) of this section to be eligible to receive the qualified general contribution on the applicable record date.

(ii) Approved class contributions. For purposes of section 530A(f)(1)(C), an approved class used for an approved class contribution is treated as a qualified class.

(iii) Multiple record dates. If eligibility is determined using multiple record dates, each account beneficiary who receives a qualified general contribution for any of the record dates pursuant to the general funding contribution must receive the same amount.

(iv) Determination of account beneficiaries in a qualified class—(A) In general. Whether an account beneficiary is part of a qualified class will be determined for each qualified general contribution based on the record date for that contribution, which may be a single date or multiple dates. For example, with respect to the first record date, contributions would be made to all account beneficiaries determined to be eligible as of that date, while with respect to subsequent record dates, contributions would be made only to those account beneficiaries who are eligible as of that subsequent record date and did not receive a contribution with respect to any preceding record date.

(B) Information based on Treasury Department records. The Secretary will determine who is an account beneficiary eligible to receive a qualified general contribution based on information obtained during the election process of § 1.530A-1T(d)(1)(i) and (ii), as updated by information reported to the Secretary under section 530A(i) as of the applicable record date.

(d) Qualified stock contributions—(1) Overview. This paragraph (d) provides rules for qualified stock contributions, including requirements and procedures for making a qualified stock contribution, and rules for the administration of qualified stock contributions.

(2) Eligible investment requirement of section 530A(b)(1)(C)(iii). The eligible investment requirement of section 530A(b)(1)(C)(iii) is not violated by the acceptance and holding of qualified stock received in a qualified stock contribution.

(3) Minimum holding period requirement—(i) In general. The minimum holding period requirement lasts until the earlier of—

(A) The date that is 5 years after the qualified stock contribution is received by the Trump account; and

(B) The end of the growth period for the account beneficiary of the Trump account.

(ii) Stock disposition during the minimum holding period. If qualified stock is disposed of in violation of the minimum holding period requirement, the trustee must repurchase a number of shares of the same class of qualified stock equal to the number of shares sold or otherwise disposed of as soon as practicable.

(iii) Satisfaction of the minimum holding period requirement. Upon satisfaction of the minimum holding period requirement, the qualified stock may be sold or otherwise disposed of. During the growth period, the proceeds of a sale or other disposition must be invested in an eligible investment. See the eligible investment requirement during the growth period in section 530A(b)(1)(C)(iii).

(iv) Exceptions to the minimum holding period requirement. The minimum holding period requirement does not prohibit a disposition required under paragraphs (d)(5) or (6) of this section. In addition, notwithstanding that requirement, qualified stock may be disposed of—

(A) To effectuate a qualified ABLE rollover contribution as defined in section 530A(d)(4)(B);

(B) To permit cash in lieu of fractional shares that cannot be transferred in kind as part of a qualified rollover contribution (for example, if fractional shares cannot be transferred as part of a qualified rollover contribution, the transferring trustee may sell the fractional shares and transfer cash as part of the qualified rollover contribution instead);

(D) If the issuer of the qualified stock is acquired (by merger, purchase, or otherwise).

(v) Minimum holding period requirement with respect to qualified rollover contributions. A qualified rollover contribution does not change or reset the minimum holding period for qualified stock.

(4) Successor qualified stock. If the Trump account receives stock (new stock) by reason of owning qualified stock (original stock), the new stock will be treated as qualified stock if the new stock satisfies the requirements in paragraph (b)(8)(ii) of this section (successor qualified stock). New stock will be treated as successor qualified stock under this paragraph (d)(4) regardless of whether the new stock is received in a nonrecognition transaction (as defined in section 7701(a)(45)), and regardless of whether the new stock is issued by the same corporation as the original stock. Successor qualified stock is subject to the same minimum holding period as the original stock measured from the date of the contribution of the original stock (for example if Company A stock was received by the Trump account on date X, any successor qualified stock received by reason of owning Company A stock would be treated as having been received by the Trump account on date X).

(5) Consequences of notification of removal from listing. If the trustee becomes aware of the filing of a notification of removal of qualified stock that it holds from listing on a national securities exchange described in paragraph (b)(8)(ii)(B) of this section (see SEC Form 25), the trustee must promptly sell or dispose of the stock, invest the cash proceeds from that disposition in an eligible investment described in section 530A(b)(3), and disclose how the proceeds were invested to the account beneficiary (for an auto account, disclosure to the Secretary, as the responsible party, is not required). For purposes of this paragraph (d)(5), a sale or disposition of the stock and the investment of the proceeds will be considered prompt if the sale or disposition and investment of the proceeds occur as soon as practicable.

(6) Corporate distributions and other transactions. If, by reason of owning qualified stock, the Trump account receives cash or other property that is not successor qualified stock, then the trustee must promptly sell or dispose of the other property, invest the net proceeds (and the distributed cash) in eligible investments described in section 530A(b)(3), and disclose how the proceeds were invested to the account beneficiary. An investment under this paragraph (d)(6) will be considered prompt if it occurs within 30 calendar days of receiving the cash or other property.

(7) Qualified stock in the master group trust. If, as a result of a qualified general contribution, an auto account (through its equitable interest in the master group trust) owns an equitable interest in stock that meets all the qualified stock requirements in paragraph (b)(8)(ii) of this section, the applicable equitable interest is treated as qualified stock for purposes of this paragraph (d).

(e) Tax implications of contributions—(1) To the contributor to an eligible donor. Contributions made to an eligible donor that is an organization described in section 501(c)(3) and exempt from tax under section 501(a) to fund a general funding contribution satisfying the requirements of this section are deductible under section 170, subject to the other requirements of that section. With regard to individuals making a gift to an organization qualifying as an eligible donor for purposes of section 530A, whether or not that eligible donor subsequently makes a general funding contribution, the gift is to an organization described in section 2522.

(2) To the eligible donor—(i) An eligible donor described in section 501(c)(3) and exempt from tax under section 501(a) furthers one or more of its purposes described in section 501(c)(3) by providing a general funding contribution, including by providing such amount through a distribution from a donor advised fund.

(ii) By making a general funding contribution, the eligible donor is making an expenditure for a purpose specified in section 170(c)(2)(B). In addition, a general funding contribution is neither a grant to an individual for purposes of section 4945 nor a distribution to a natural person for purposes of section 4966. Additionally, to the extent that an obligation to exercise expenditure responsibility arises under sections 4945 and 4966, a donor that makes a general funding contribution satisfying the requirements of this section is treated as exercising expenditure responsibility in accordance with section 4945(h) with respect to that contribution.

(f) Applicability and expiration dates. This section applies to taxable years beginning on or after January 1, 2026. This section expires on September 30, 2029.

[T.D. 10056, 91 FR 61724, Sept. 30, 2026]