CA SB1499

Adds Section 17501.8 to the Revenue and Taxation Code to conform California state tax law to federal retirement account contribution changes made by the Consolidated Appropriations Act, 2023

Applies three federal amendments to California tax law: indexing IRA catch-up limits to inflation, implementing higher catch-up limits for taxpayers ages 60-63, and adjusting contribution limits for SIMPLE plans

Reduces tax complications by aligning California and federal income tax basis calculations for retirement accounts to prevent mismatches between state and federal reporting

Requires the Legislative Analyst's Office to report to the Legislature by October 1, 2029, on the number of taxpayers affected and total dollar value of retirement account contributions made under the expanded deductions

Takes effect immediately as a tax levy measure