Trump Accounts in Vermont: State Tax Treatment
By Forrest Baumhover, CFP®, EA · Last verified September 2, 2026
Whether Vermont taxes a Trump Account's growth and distributions the way the IRS does — checked against Vermont's own conformity law, not a national summary.
Does Vermont follow the federal rule?
Vermont uses "fixed-date" (static) conformity: its tax code names a specific historical IRC date rather than following current federal law automatically. Its conformity date is July 4, 2025. That date is on or after OBBBA's July 4, 2025 enactment, so Vermont's general conformity picks up §530A as part of the Code it already follows.
What this means for a Trump Account in Vermont
Vermont's conformity to §530A is partial — some elements of the federal treatment apply for state purposes and some do not. Separately from its general conformity mechanism, Vermont has taken its own action specific to Trump Accounts/§530A: Act 164 (H.933) of 2026 retroactively updated Vermont's IRC conformity for tax year 2025 to adopt OBBBA, while explicitly excluding three named provisions (domestic research-expensing under IRC §174A, qualified production property depreciation under §168(n), and the §250 FDII/GILTI deduction changes). §530A is not among the listed exceptions.
A note on this determination
Vermont is technically a fixed-date state, but its Legislature retroactively updated the 2025 conformity date/scope specifically to reach OBBBA, naming only three excluded provisions — §530A is not among them, implying it is captured by default. But the Department of Taxes' own OBBBA guidance page never mentions §530A or Trump Accounts by name, so this is an inference from the absence of a listed exception rather than an affirmative statement.
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 Vermont compares to other states.