Bill > HF316

This bill introduces a new tax subtraction for income received from retirement savings plans for Minnesota taxpayers, allowing individuals to reduce their taxable income by up to $12,000 for married couples filing jointly or surviving spouses, and up to $6,000 for other filers. The subtraction amount is reduced by 20 percent for taxpayers with adjusted gross income over $32,000, and cannot be claimed in conjunction with certain other existing retirement-related tax subtractions. The bill broadly defines "retirement savings plan" to include various employer-sponsored retirement accounts such as 401(k)s, 403(b)s, 457(b) plans, SEP plans, SIMPLE plans, and individual retirement accounts. The subtraction limits will be annually adjusted by the commissioner, with the initial statutory year set for 2024, and the provision becomes effective for taxable years beginning after December 31, 2024. This legislation aims to provide tax relief for individuals saving for retirement by allowing them to subtract a portion of their retirement income from their state tax calculation.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0316&ssn=0&y=2025