Bill > H3500

This bill amends South Carolina's tax code to allow a new income tax deduction for contributions to and distributions from certain qualified retirement plans without penalty. Specifically, the bill permits deductions for retirement plan contributions and distributions as defined under Internal Revenue Code Sections 408 and 457, which typically cover Individual Retirement Accounts (IRAs) and certain deferred compensation plans like 457(b) plans for government and non-profit employees. The bill stipulates that any amounts deducted under this provision will correspondingly reduce the deduction allowed under another existing tax code section (12-6-1170). The new tax provision will take effect upon the Governor's approval and will apply to income tax years beginning after 2024, providing taxpayers with a new opportunity to reduce their state tax liability through retirement plan contributions and distributions.

Budget and Finance

https://www.scstatehouse.gov/billsearch.php?billnumbers=3500&session=126&summary=B