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 are not burdened by additional tax withholding, thereby promoting the use of these retirement accounts. This change is expected to provide clearer guidance for taxpayers and enhance the benefits associated with Roth IRAs.