SB1371 Summary

• Adds two new income tax subtraction provisions for individuals age 67 and older beginning in taxable year 2025

• Allows subtraction of distributions from pensions and retirement accounts (including IRAs, 401(k)s, and 403(b) plans) for taxpayers age 67 or older

• Allows subtraction of contributions to individual retirement accounts under IRC section 408 to the extent not deducted federally

• Combined subtraction limit for both new provisions cannot exceed the optional standard deduction amount as adjusted annually for inflation

• Applies to taxable years beginning January 1, 2025 and thereafter