HF 5407

as introduced - 93rd Legislature (2023 - 2024) Posted on 04/24/2024 01:57pm

A bill for an act
relating to taxation; individual income; providing a subtraction of income from
certain retirement plans; amending Minnesota Statutes 2022, section 290.0132,
by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2022, section 290.0132, is amended by adding a subdivision
to read:

new text begin Subd. 36. new text end

new text begin Certain retirement benefits. new text end

new text begin The amount of qualified distributions received
in a taxable year is a subtraction, subject to the limits in clauses (1) and (2). For purposes
of this subdivision, "qualified distributions" means payments or distributions received in a
taxable year by a Minnesota resident from a qualified retirement plan, as defined in section
401 of the Internal Revenue Code, or from an individual retirement account established
under section 408 of the Internal Revenue Code:
new text end

new text begin (1) for a married taxpayer filing a joint return, if both spouses are at least 65 years of
age before the end of the taxable year, the subtraction equals the lesser of qualified
distributions received, or $150,000; and
new text end

new text begin (2) for all other taxpayers who are at least 65 years of age before the end of the taxable
year, the subtraction equals the lesser of qualified distributions received, or $75,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2023.
new text end