2008 House Bill 5971

Allow IRA withdrawal penalty tax deduction

Introduced in the House

April 10, 2008

Introduced by Rep. Paul Opsommer (R-93)

To allow a person who takes an early distribution from an IRA, 401(k), or other qualified retirement plan to deduct the early withdrawal penalty from their state income tax taxable income. Also, to allow the first 50 percent of a veteran’s disability payments to be deducted. Also, to increase the household income at which certain homestead property tax income tax credits begins to phase out.

Referred to the Committee on Tax Policy