Trump Accounts in Illinois: State Tax Treatment
By Forrest Baumhover, CFP®, EA · Last verified September 2, 2026
Whether Illinois taxes a Trump Account's growth and distributions the way the IRS does — checked against Illinois's own conformity law, not a national summary.
Does Illinois follow the federal rule?
Illinois uses "rolling" (current) conformity: its income tax code follows the Internal Revenue Code as it currently stands, not a fixed historical date. A federal change — including §530A, added by the One Big Beautiful Bill Act (OBBBA, Public Law 119-21, enacted July 4, 2025) — applies for Illinois income tax purposes the same way it does federally, without the legislature needing to act separately, unless Illinois has specifically decoupled from that provision.
What this means for a Trump Account in Illinois
Based on that mechanism, Illinois currently follows the federal §530A treatment: contributions and growth are not separately taxed by the state before distribution, the same deferral the federal rule provides.
A note on this determination
Rolling conformity by "in effect for the taxable year" language. Illinois's 2025/2026 decoupling actions cover bonus depreciation, GILTI/NCTI, and a QSBS gain addback — none relate to §530A, and the DOR's own bulletin listing those items does not mention §530A either.
Back to the full picture
See the Trump Accounts hub for the federal contribution and distribution rules this state-tax determination builds on, and the state-by-state conformity library for how Illinois compares to other states.