Bill > H2651

This bill allows individuals receiving payments or distributions from an Individual Retirement Account (IRA), which is a type of retirement savings plan, to decide how much state income tax should be withheld from those payments. Currently, tax withholding rules might be different or not apply in certain situations. Under this bill, if a person wants to control their tax withholding from an IRA distribution, they must fill out a specific form detailing the amount they want withheld and submit it to both the entity paying them (the payer) and the state's tax commissioner. This provision applies regardless of whether the payment is subject to federal tax withholding.