This 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 who receive qualified distributions from retirement plans to subtract these amounts from their taxable income, subject to specific limits. "Qualified distributions" are defined as payments from a qualified retirement plan or an individual retirement account. For married taxpayers filing jointly, if both spouses are at least 65 years old by the end of the taxable year, the subtraction is capped at $150,000. For all other taxpayers who meet the age requirement, the cap is set at $75,000.

The new legal language specifies the conditions under which these subtractions apply and outlines the effective date of the provision, which is for taxable years beginning after December 31, 2024. This change aims to provide tax relief to senior citizens receiving retirement benefits, thereby potentially enhancing their financial security in retirement.

Statutes affected:
Introduction: 290.0132