SB 978

This bill increases and expands the individual state income tax subtraction for

payments or distributions received from qualified retirement plans under the

Internal Revenue Code or from certain individual retirement accounts. Under the

bill, beginning in tax year 2024, up to $75,000 of payments or distributions received

from qualified retirement plans or certain individual retirement accounts may be

subtracted annually from an individual's taxable income, if the individual is at least

65 years of age. If the individual and individual's spouse are both at least 65 years

of age, the sum of the amount that the couple may subtract annually from their

combined taxable income may not exceed $150,000.

Under current law, up to $5,000 of payments or distributions received by

certain individuals from qualified retirement plans or from certain individual

retirement accounts may be subtracted. To be eligible, the individual must be at least

65 years old and have federal adjusted gross income under $15,000, or under $30,000

if married.

Because this bill relates to an exemption from state or local taxes, it may be

referred to the Joint Survey Committee on Tax Exemptions for a report to be printed

as an appendix to the bill.