No. 27093 (Amendment): R865-9I-38. Pensions and Annuities Pursuant to Utah Code Ann. Section 59-10-114

DAR File No.: 27093
Filed: 04/14/2004, 11:26
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

Section 59-10-114 provides a deduction from federal adjusted gross income for retirement income paid for from statutorily described retirement plans. The deleted language states that, in addition to being paid from one of these plans, the amounts paid must be paid as retirement income, and not as an early distribution from a retirement plan.

 

Summary of the rule or change:

This section is deleted because the section adds additional requirements for a deduction for retirement income than the statute requires.

 

State statutory or constitutional authorization for this rule:

Section 59-10-114

 

Anticipated cost or savings to:

the state budget:

This amendment may create an unknown decrease to the Uniform School Fund since more taxpayers will qualify for this deduction.

 

local governments:

Income tax revenues do not impact local government.

 

other persons:

Unknown increase to taxpayers who will have a smaller tax liability.

 

Compliance costs for affected persons:

A taxpayer may now qualify for an income tax deduction that he did not qualify for under the rule.

 

Comments by the department head on the fiscal impact the rule may have on businesses:

None--This rule amendment impacts individual income tax not business taxes.

 

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Tax Commission
Auditing
210 N 1950 W
SALT LAKE CITY UT 84134

 

Direct questions regarding this rule to:

Cheryl Lee at the above address, by phone at 801-297-3900, by FAX at 801-297-3919, or by Internet E-mail at [e-mail]

 

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

06/01/2004

 

This rule may become effective on:

06/02/2004

 

Authorized by:

Pam Hendrickson, Commissioner

 

 

RULE TEXT

R865. Tax Commission, Auditing.

R865-9I. Income Tax.

[R865-9I-38. Pensions and Annuities Pursuant to Utah Code Ann. Section 59-10-114.

A. Amounts received by taxpayers from pension or annuity plans described in Section 59-10-114 are not retirement income for purposes of that section if:

1. The amounts received are subject to the penalty or additional tax imposed by I.R.C. sections 72(q) and (t); or

2. The amounts are not subject to the penalty or additional taxes imposed by I.R.C. Sections 72(q) and (t) because they are a return of previously taxed contributions; or

3. The amounts received are due to termination of employment before reaching a normal retirement age as established under the qualifying plan.

]

KEY: historic preservation, income tax, tax returns, enterprise zones

[December 18, 2003]2004

Notice of Continuation April 22, 2002

59-10-114