Bill > HB05148

This bill proposes to modify section 12-705 of the general statutes to eliminate the current requirement that payers (such as pension funds, retirement account administrators, or financial institutions) automatically deduct and withhold personal income tax from lump-sum payments of pensions and annuities. Currently, when an individual receives a large, one-time payment from a pension or annuity, a portion of that payment is typically withheld for state income tax purposes. By removing this mandatory withholding requirement, the bill would give pensioners and annuity recipients more control over their tax obligations, potentially allowing them to manage their tax payments differently. The change could provide more immediate financial flexibility for recipients of these payments, though they would still be responsible for reporting and paying any applicable taxes according to state tax laws.

Budget and Finance

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=HB05148&which_year=2025