as introduced - 93rd Legislature (2023 - 2024) Posted on 03/11/2024 02:15pm
Engrossments | ||
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Introduction | Posted on 03/08/2024 |
A bill for an act
relating to taxation; individual income; permitting a limited subtraction for income
received from a retirement savings plan; amending Minnesota Statutes 2022,
section 290.0132, by adding a subdivision.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2022, section 290.0132, is amended by adding a subdivision
to read:
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(a) The amount of income received from a
retirement savings plan is a subtraction.
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(b) The subtraction under this subdivision is limited to:
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(1) $12,000 for a married taxpayer filing a joint return or a surviving spouse; or
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(2) $6,000 for all other filers.
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(c) The maximum subtraction under paragraph (b) is reduced by 20 percent of adjusted
gross income in excess of $32,000.
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(d) The subtraction is limited to taxpayers who do not claim any of the subtractions
under subdivision 5, 21, or 34.
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(e) For the purposes of this subdivision, "retirement savings plan" means a plan or
program offered by an employer that permits contributions to be set aside for retirement on
a pretax or after-tax basis. Retirement savings plan includes but is not limited to a plan
described in section 401(a) of the Internal Revenue Code, an annuity plan or annuity contract
described in section 403(a) or 403(b) of the Internal Revenue Code, a plan within the meaning
of section 457(b) of the Internal Revenue Code, a simplified employee pension (SEP) plan,
a savings incentive match plan for employees (SIMPLE) plan, an automatic enrollment
payroll deduction individual retirement account, and a multiemployer pension plan described
in section 414(f) of the Internal Revenue Code.
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(f) The commissioner must annually adjust the subtraction limits in paragraph (b) and
the adjusted gross income amount in paragraph (c), as provided in section 270C.22. The
statutory year is taxable year 2024.
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This section is effective for taxable years beginning after December
31, 2023.
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