The bill SB1358 amends Arizona's income tax withholding laws related to pension, annuity, and retirement account payments. It clarifies that individuals can request withholding for distributions from retirement accounts, provided the amounts are included in their Arizona gross income. Additionally, it establishes that such distributions will be treated as wage payments for tax purposes if a withholding request is in effect at the time of payment. The bill also allows payors to deny withholding requests and permits individuals to initiate, adjust, or terminate withholding requests through written or electronic means.

Key changes from current law include the explicit inclusion of retirement account distributions as eligible for withholding, the ability for payors to deny withholding requests, and the provision for requests to be made electronically. The definitions of "pension," "annuity," and "retirement account" are also updated to provide clarity on what constitutes these terms for withholding purposes. Overall, the bill aims to streamline the process for individuals seeking to manage their tax withholding on retirement-related income.

Statutes affected:
Introduced Version: 43-404
Senate Engrossed Version: 43-404
Chaptered Version: 43-404