MN HF150

Eliminates income limits and caps on the subtraction for taxable Social Security benefits and retirement plan distributions, making the subtraction unlimited instead of the current maximum amounts ($5,150 for joint filers, $4,020 for single filers).

Removes the reduction of maximum subtraction amounts based on provisional income thresholds ($78,180 for joint filers, $61,080 for single filers), allowing full subtraction regardless of income level.

Expands eligible retirement income to include distributions from 401(k) plans, IRAs, SEP plans, SIMPLE plans, deferred compensation plans, and multiemployer pension plans in addition to Social Security benefits.

Requires the Commissioner to adjust maximum subtraction and threshold amounts annually using the 2019 taxable year as the statutory base, with amounts rounded to the nearest $10.

Effective for taxable years beginning after December 31, 2020.