Enacts new subsections (6a) and (6b) to GS 105-134.6(b), which lists deductions from taxable income, to add deductions to the list as follows. (1) The amount received during the taxable year under NC state and local government retirement plans and under federal government retirement plans. (2) The greater of: (a) the amount received during the taxable year under a state or local government retirement plan of a state other than NC, to the extent the other state would not subject to individual income tax the equivalent amount received under a NC state or local government retirement plan or (b) up to $4,000 received during the taxable year under a state or local government retirement plan of a state other than North Carolina; for married couples filing a joint return, the maximum dollar amount applies separately to each spouse’s benefits if both spouses received benefits from a retirement plan. Makes conforming changes.
Amends GS 105-134.1(13), clarifying the definition for retirement plan (was, retirement benefits) to include an individual retirement plan as defined under the Internal Revenue Code (Code) and any plan treated as an individual retirement plan under the Code (was, includes amounts received from an individual retirement account, as described in the Code, or from an individual retirement annuity as described). Makes other clarifying changes.
Effective for taxable years beginning on or after January 1, 2011.