1.1 A bill for an act
1.2 relating to taxation; individual income; permitting a limited subtraction for income
1.3 received from a retirement savings plan; amending Minnesota Statutes 2024,
1.4 section 290.0132, by adding a subdivision.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2024, section 290.0132, is amended by adding a subdivision
1.7to read:
1.8 Subd. 36.Retirement income subtraction.(a) The amount of income received from a
1.9retirement savings plan is a subtraction.
1.10 (b) The subtraction under this subdivision is limited to:
1.11 (1) $12,000 for a married taxpayer filing a joint return or a surviving spouse; or
1.12 (2) $6,000 for all other filers.
1.13 (c) The maximum subtraction under paragraph (b) is reduced by 20 percent of adjusted
1.14gross income in excess of $32,000.
1.15 (d) The subtraction is limited to taxpayers who do not claim any of the subtractions
1.16under subdivision 5, 21, or 34.
1.17 (e) For the purposes of this subdivision, "retirement savings plan" means a plan or
1.18program offered by an employer that permits contributions to be set aside for retirement on
1.19a pretax or after-tax basis. Retirement savings plan includes but is not limited to a plan
1.20described in section 401(a) of the Internal Revenue Code, an annuity plan or annuity contract
1.21described in section 403(a) or 403(b) of the Internal Revenue Code, a plan within the meaning
1.22of section 457(b) of the Internal Revenue Code, a simplified employee pension (SEP) plan,
1Section 1.
REVISOR EAP/ES 25-0196601/22/25
State of Minnesota
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HOUSE OF REPRESENTATIVES
H. F. No. 316
NINETY-FOURTH SESSION
Authored by Nadeau, Myers and Allen02/13/2025
The bill was read for the first time and referred to the Committee on Taxes 2.1a savings incentive match plan for employees (SIMPLE) plan, an automatic enrollment
2.2payroll deduction individual retirement account, and a multiemployer pension plan described
2.3in section 414(f) of the Internal Revenue Code.
2.4 (f) The commissioner must annually adjust the subtraction limits in paragraph (b) and
2.5the adjusted gross income amount in paragraph (c), as provided in section 270C.22. The
2.6statutory year is taxable year 2025.
2.7 EFFECTIVE DATE.This section is effective for taxable years beginning after December
2.831, 2024.
2Section 1.
REVISOR EAP/ES 25-0196601/22/25