Bill > HB184

This bill introduces a new tax deduction for Louisiana residents who receive hardship distributions from retirement accounts under specific circumstances. The deduction applies to individuals diagnosed with a terminal illness, as defined by state law, who withdraw funds from their retirement accounts due to an immediate and serious financial need. For married couples filing jointly, the deduction is available if either spouse has been diagnosed with a terminal illness by a licensed physician. A hardship distribution is defined as a withdrawal from a retirement plan participant's elective deferral account made because of an urgent financial situation, as determined by the plan's policies. The bill adds this deduction to the definition of "tax table income" and specifies that it will take effect for taxable periods beginning on or after January 1, 2026. By providing this tax relief, the legislation aims to offer financial support to individuals facing severe health challenges who need to access their retirement funds early.

Budget and Finance

https://www.legis.la.gov/legis/BillInfo.aspx?s=25rs&b=HB184&sbi=y