Bill
A 4364
Bill A 4364 exempts certain retirement plan distributions from state income tax, boosting disposable income for retirees and encouraging savings for retirement.
Bill Number: A 4364
Title: Exempts Certain Retirement Plan Distributions for Income Tax Purposes
Status: Referred to Ways and Means
Introduced: February 04, 2025
Classification: Bill
Bill A 4364 aims to provide tax relief to individuals receiving distributions from certain retirement plans. The primary intent of this legislation is to exempt specific retirement plan distributions from state income tax, thereby encouraging savings for retirement and easing the financial burden on retirees.
Tax Exemption: The bill proposes to exempt distributions from designated retirement plans from state income tax. This exemption would apply to:
Eligibility Criteria: The bill outlines specific eligibility criteria for individuals to qualify for the tax exemption. This may include:
Implementation Timeline: The bill does not specify an immediate effective date but may include provisions for gradual implementation or a specific start date for the tax exemption.
Retirees and Individuals with Retirement Accounts: The primary beneficiaries of this bill would be retirees and individuals who are currently withdrawing funds from their retirement accounts. By exempting these distributions from state income tax, the bill aims to increase disposable income for these individuals.
State Revenue: The bill may have implications for state tax revenue, as the exemption could reduce the overall income tax collected from retirees.
Current Status: As of February 4, 2025, the bill has been referred to the Ways and Means Committee for further consideration. This committee will review the bill's provisions, assess its fiscal impact, and potentially make recommendations for amendments or approval.
Related Bills: Bill A 4364 is related to several prior-session bills, including:
These related bills may provide context or precedent for the current legislation, indicating ongoing discussions around retirement plan taxation.
Bill A 4364 represents a significant step towards providing tax relief for retirees by exempting certain retirement plan distributions from state income tax. As it moves through the legislative process, stakeholders, including retirees and financial planners, will be closely monitoring its progress and potential impact on retirement savings strategies.
Compiled from official sources — confirm details with the bill’s official record.
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