| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to taxation; individual income; permitting a limited subtraction for income |
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| 3 | 3 | | 1.3 received from a retirement savings plan; amending Minnesota Statutes 2024, |
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| 4 | 4 | | 1.4 section 290.0132, by adding a subdivision. |
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| 5 | 5 | | 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 6 | 6 | | 1.6 Section 1. Minnesota Statutes 2024, section 290.0132, is amended by adding a subdivision |
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| 7 | 7 | | 1.7to read: |
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| 8 | 8 | | 1.8 Subd. 36.Retirement income subtraction.(a) The amount of income received from a |
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| 9 | 9 | | 1.9retirement savings plan is a subtraction. |
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| 10 | 10 | | 1.10 (b) The subtraction under this subdivision is limited to: |
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| 11 | 11 | | 1.11 (1) $12,000 for a married taxpayer filing a joint return or a surviving spouse; or |
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| 12 | 12 | | 1.12 (2) $6,000 for all other filers. |
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| 13 | 13 | | 1.13 (c) The maximum subtraction under paragraph (b) is reduced by 20 percent of adjusted |
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| 14 | 14 | | 1.14gross income in excess of $32,000. |
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| 15 | 15 | | 1.15 (d) The subtraction is limited to taxpayers who do not claim any of the subtractions |
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| 16 | 16 | | 1.16under subdivision 5, 21, or 34. |
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| 17 | 17 | | 1.17 (e) For the purposes of this subdivision, "retirement savings plan" means a plan or |
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| 18 | 18 | | 1.18program offered by an employer that permits contributions to be set aside for retirement on |
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| 19 | 19 | | 1.19a pretax or after-tax basis. Retirement savings plan includes but is not limited to a plan |
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| 20 | 20 | | 1.20described in section 401(a) of the Internal Revenue Code, an annuity plan or annuity contract |
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| 21 | 21 | | 1.21described in section 403(a) or 403(b) of the Internal Revenue Code, a plan within the meaning |
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| 22 | 22 | | 1.22of section 457(b) of the Internal Revenue Code, a simplified employee pension (SEP) plan, |
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| 23 | 23 | | 1Section 1. |
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| 24 | 24 | | REVISOR EAP/ES 25-0196601/22/25 |
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| 25 | 25 | | State of Minnesota |
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| 26 | 26 | | This Document can be made available |
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| 27 | 27 | | in alternative formats upon request |
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| 28 | 28 | | HOUSE OF REPRESENTATIVES |
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| 29 | 29 | | H. F. No. 316 |
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| 30 | 30 | | NINETY-FOURTH SESSION |
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| 31 | 31 | | Authored by Nadeau, Myers and Allen02/13/2025 |
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| 32 | 32 | | 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 |
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| 33 | 33 | | 2.2payroll deduction individual retirement account, and a multiemployer pension plan described |
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| 34 | 34 | | 2.3in section 414(f) of the Internal Revenue Code. |
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| 35 | 35 | | 2.4 (f) The commissioner must annually adjust the subtraction limits in paragraph (b) and |
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| 36 | 36 | | 2.5the adjusted gross income amount in paragraph (c), as provided in section 270C.22. The |
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| 37 | 37 | | 2.6statutory year is taxable year 2025. |
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| 38 | 38 | | 2.7 EFFECTIVE DATE.This section is effective for taxable years beginning after December |
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| 39 | 39 | | 2.831, 2024. |
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| 40 | 40 | | 2Section 1. |
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| 41 | 41 | | REVISOR EAP/ES 25-0196601/22/25 |
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