This bill amends Minnesota Statutes 2022, section 290.0132, by adding a new subdivision that provides a subtraction of income from certain retirement plans for individual income tax purposes. Specifically, it introduces a provision for "qualified distributions" received by Minnesota residents from qualified retirement plans or individual retirement accounts. The bill establishes limits on the subtraction amount based on the taxpayer's filing status and age, allowing married couples filing jointly, where both spouses are at least 65 years old, to subtract the lesser of their qualified distributions or $150,000. For all other taxpayers who are at least 65 years old, the subtraction limit is set at $75,000.

The effective date for this new provision is for taxable years beginning after December 31, 2023. This change aims to provide tax relief for older residents receiving retirement benefits, thereby encouraging financial stability for seniors in Minnesota.

Statutes affected:
Introduction: 290.0132