The proposed bill would amend current Arizona statutes regarding individual income tax by introducing a new subtraction for retirement account distributions for taxpayers aged 67 and older. Specifically, it would allow these individuals to subtract the amount of any distributions from their retirement accounts from their taxable income, provided that these amounts are not already excluded from Arizona gross income. The total subtraction would be capped at the amount of the standard deduction, which is adjusted annually for inflation.

Additionally, the bill defines "retirement account" to include various types of qualified retirement plans and individual retirement accounts as specified in the Internal Revenue Code. The new provisions would apply to taxable years beginning after December 31, 2024, thereby updating the existing tax framework to provide tax relief for older taxpayers receiving retirement distributions.

Statutes affected:
Introduced Version: 43-1022
Senate Engrossed Version: 43-1022