Bill Text: NC S18 | 2015-2016 | Regular Session | Amended

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Bill Title: Rollovers into Qualifying Bailey Plans

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2015-02-04 - Re-ref to Pensions & Retirement and Aging. If fav, re-ref to Finance [S18 Detail]

Download: North_Carolina-2015-S18-Amended.html

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GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2015

S                                                                                                                                                     1

SENATE BILL 18

 

 

Short Title:        Rollovers into Qualifying Bailey Plans.		(Public)
Sponsors:	Senators Rabon, Rucho, Tillman (Primary Sponsors);  Clark, Ford, and Foushee.
Referred to:	Rules and Operations of the Senate.

February 4, 2015

A BILL TO BE ENTITLED

AN ACT to limit the tax exemption for retirement plan distributions rolled over into a QUALIFYING tax‑exempt Bailey RETIREMENT to rollover distributions from another qualifying tax‑exempt bailey retirement account, as recommended by the revenue laws study committee.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 105‑153.5(b)(5) reads as rewritten:

"(b)      Other Deductions. – In calculating North Carolina taxable income, a taxpayer may deduct from the taxpayer's adjusted gross income any of the following items that are included in the taxpayer's adjusted gross income:

…

(5)        The amount received during the taxable year from one or more State, local, or federal government retirement plans to the extent the amount is exempt from tax under this Part pursuant to a court order in settlement of one or more of the cases listed in this subdivision. The deduction provided by this subdivision does not apply to distributions from a retirement plan exempt from tax under this subdivision to the extent attributable to a rollover from a retirement account that is not exempt under this subdivision. The portion of a distribution that is attributable to a rollover from a retirement account that is not exempt under this subdivision is taxable in accordance with the methodology used by Superior Court Judge Jack A. Thompson in his Order Regarding the Optional Retirement Program for State Institutions for Higher Education, signed on November 19, 1999. This subdivision applies to a court order in settlement of any of the following cases:

a.         Bailey v. State, 92 CVS 10221, 94 CVS 6904, 95 CVS 6625, 95 CVS 8230.

b.         Emory v. State, 98 CVS 0738.

c.         Patton v. State, 95 CVS 04346."

SECTION 2.  This act is effective for taxable years beginning on or after January 1, 2016.