The bill H. 3500 proposes an amendment to Section 12-6-1140 of the South Carolina Code of Laws, which pertains to income tax deductions. The amendment introduces a new provision that allows taxpayers to deduct contributions to and distributions from certain qualified retirement plans, specifically those defined in Internal Revenue Code Sections 408 and 457, provided that these distributions are not subject to penalties for premature withdrawal. Additionally, it stipulates that any amounts deducted under this new provision will proportionately reduce the deductions allowed under Section 12-6-1170.

This legislation is set to take effect upon the Governor's approval and will apply to income tax years commencing after 2024. The intent of the bill is to provide tax relief for individuals contributing to retirement savings, thereby encouraging more residents to invest in their future financial security.

Statutes affected:
12/05/2024: 12-6-1140
Latest Version: 12-6-1140