SF2580

Purpose of the Bill

This bill aims to address and rectify certain errors related to individual income tax, specifically concerning the timing of contributions to retirement plans within the state of Minnesota.

Main Provisions

• The bill requires annuity contract providers to treat contributions made to individual retirement plans as contributions for the previous taxable year if they receive these contributions by the legal deadline stated in section 219f3 of the Internal Revenue Code.
• The provision applies only when the annuity contract provider is notified by the individual regarding which tax year the contribution is meant for. This notification must be received within three years from the original tax return due date of that year.

Significant Changes

• This bill ensures that taxpayers can designate retirement plan contributions to a specific tax year, aligning with Internal Revenue Code guidelines.
• It introduces a timeframe, allowing taxpayers up to three years past the original filing deadline to correct the tax year designation for their retirement contributions.

Relevant Terms

taxation, individual income, retirement plan, annuity contract, Internal Revenue Code, taxable year, contribution, tax year correction