Tallman4123
Recycles dryer sheets
- Joined
- Aug 15, 2014
- Messages
- 141
Beginning in 2023, Connecticut is phasing out state income tax on "distributions from IRAs." Taxpayers qualify for the exemption if their income is below certain thresholds. Here is a brief summary from ct.gov: "The FY 22-23 Budget Implementer Act phases out the income tax on certain taxpayers’ distributions from IRAs, other than Roth IRAs, over four years beginning with the 2023 tax year."
My question is: Does a 401(k) distribution qualify as an "IRA distribution?"
Most of my retirement assets are still in former employer 401(k) plans. Of course, I could always move these funds into rollover IRAs to qualify for the exemption if necessary but it just seems weird that I'd have to do that to qualify. I just can't find any language in or around the Act that clarifies...
My question is: Does a 401(k) distribution qualify as an "IRA distribution?"
Most of my retirement assets are still in former employer 401(k) plans. Of course, I could always move these funds into rollover IRAs to qualify for the exemption if necessary but it just seems weird that I'd have to do that to qualify. I just can't find any language in or around the Act that clarifies...