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 statute.

The intent of this legislation is to ensure that individuals receiving qualified distributions from their Roth IRAs will not have taxes deducted or withheld from these amounts, thereby providing clearer guidance on the tax implications of such distributions. This change is expected to benefit taxpayers by allowing them to retain the full amount of their qualified distributions without the burden of tax withholding.