AZ SB1358

Amends Arizona Revised Statutes section 43-404 to extend income tax withholding requirements to distributions from retirement accounts, pensions, and annuities when requested in writing by the payee.

Defines "retirement account" to include qualified retirement plans under IRC sections 401, 403, and 457, as well as individual retirement accounts under IRC section 408 (including SEP and SIMPLE plans).

Establishes that distributions from retirement accounts are eligible for withholding only to the extent the amount is includable in Arizona gross income of the individual receiving the distribution.

Allows requests to initiate, adjust, or terminate withholding to be executed in writing by paper or electronic means using either a department-prescribed form or its electronic equivalent.

Defines "pension" and "annuity" with specific reference to Internal Revenue Code provisions and clarifies that withholding only applies to amounts includable in Arizona gross income.