PA HB1537

Amends the Pennsylvania Tax Reform Code of 1971 to exclude deferred compensation plan distributions from the definition of taxable "compensation" for state personal income tax purposes

Removes distributions under IRC Section 409A(d)(1) nonqualified deferred compensation plans from taxable income, including both the deferred amounts and any earnings on those deferrals

Applies to distributions paid during employment or to retired persons after retirement from service

Takes effect 60 days after enactment