The bill amends Minnesota Statutes 2024, section 290.0132, by adding a new subdivision that provides a subtraction of income for certain retirement benefits. Specifically, it allows Minnesota residents to subtract qualified distributions received from qualified retirement plans or individual retirement accounts from their taxable income. The bill defines "qualified distributions" and sets limits on the subtraction amount based on the taxpayer's filing status and age. For married couples filing jointly, if both spouses are at least 65 years old, the subtraction can be up to $150,000. For other taxpayers who are at least 65 years old, the subtraction is limited to $75,000.

Additionally, the bill specifies that this new provision will be effective for taxable years beginning after December 31, 2024. This change aims to provide tax relief for seniors receiving retirement benefits, thereby encouraging financial stability among older residents in Minnesota.

Statutes affected:
Introduction: 290.0132