The proposed bill, General Assembly Proposed Bill No. 6753, aims to amend section 12-705 of the general statutes to clarify the tax treatment of qualified distributions from Roth individual retirement accounts (IRAs). Specifically, the bill inserts language stating that these qualified distributions are not subject to the deduction and withholding of personal income tax as outlined in the existing law.

The intent of this legislation is to ensure that individuals receiving qualified distributions from their Roth IRAs will not have taxes deducted from these amounts, thereby providing them with full access to their funds without the burden of withholding taxes. This change is designed to promote the use of Roth IRAs by making them more financially advantageous for account holders.