The proposed bill, if enacted, would amend section 43-1022 of the Arizona Revised Statutes to introduce new individual income tax subtractions for certain retirement-related distributions and contributions. Specifically, it would allow taxpayers aged 59.5 years or older to subtract the amount of any distributions from a pension or retirement account, provided these amounts are not already excluded from Arizona gross income. Additionally, the bill would permit taxpayers to subtract contributions made during the taxable year to individual retirement accounts (IRAs) and Roth IRAs, as long as these contributions were not deducted when calculating federal adjusted gross income.

The bill also includes definitions for "pension" and "retirement account," clarifying the types of plans that qualify for these subtractions. The new provisions would apply to taxable years beginning January 1, 2025, and the act would take effect on the general effective date. Overall, this legislation aims to provide tax relief for individuals accessing retirement funds and contributing to retirement savings, potentially impacting state income tax collections.

Statutes affected:
Introduced Version: 43-1022