Bill
HB 6753
Overview: HB 6753, AN ACT CONCERNING THE DEDUCTION AND WITHHOLDING OF PERSONAL INCOME TAX FROM ROTH INDIVIDUAL RETIREMENT ACCOUNT QUALIFIED DISTRIBUTIONS, was referred to the Joint
Overview: HB 6753, AN ACT CONCERNING THE DEDUCTION AND WITHHOLDING OF PERSONAL INCOME TAX FROM ROTH INDIVIDUAL RETIREMENT ACCOUNT QUALIFIED DISTRIBUTIONS, was referred to the Joint Committee on Finance, Revenue and Bonding. It was introduced on January 28, 2025.
Purpose and Intent: The bill aims to address the taxation of Roth Individual Retirement Account (Roth IRA) qualified distributions. Currently, Roth IRA distributions are generally not subject to federal income tax, but they may be subject to state income tax. This bill seeks to provide clarity and consistency around the deduction and withholding of state personal income tax from Roth IRA qualified distributions.
Key Provisions:
- Allows for the deduction of Roth IRA qualified distributions from state personal income tax
- Requires employers to withhold state personal income tax from Roth IRA qualified distributions, similar to the withholding requirements for traditional IRA distributions
Affected Parties and Impacts:
- Individuals with Roth IRAs who receive qualified distributions
- Employers responsible for withholding state personal income tax from Roth IRA distributions
- State tax authorities, who will see a potential reduction in personal income tax revenue from Roth IRA qualified distributions
Procedural and Timeline Considerations:
The bill has been referred to the Joint Committee on Finance, Revenue and Bonding for further consideration. The next step would be a public hearing and committee deliberations before any potential vote by the full legislature.
Compiled from official sources — confirm details with the bill’s official record.
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