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Pennsylvania excludes early domestic abuse retirement distributions from personal income tax

Original title: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in personal income tax, further providing for definitions.

Last action · February 20, 2025: Referred to FINANCE, Feb. 20, 2025Sponsors: Ben Waxman and 7 others

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Would Do

Pennsylvania excludes certain retirement plan distributions from personal income tax when withdrawn by individuals who self-certify as victims of domestic abuse within a five-year period, taking effect in 60 days.

Why it matters

Taxpayers who withdraw retirement funds early due to domestic abuse will not face state income tax on those distributions, provided they meet federal standards.

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

Victims of domestic abuse

Individuals who withdraw retirement funds early due to domestic abuse become eligible to exclude those distributions from state taxable compensation.

Key Facts

  • The bill amends Section 301(d) of the Tax Reform Code of 1971 to exclude certain early retirement distributions from the definition of taxable compensation.
  • The tax exemption applies to individuals who have not yet retired from service after reaching a specified age or stated period of employment.
  • Claiming the exclusion requires the withdrawing individual to show, through a method of self-certification specified under 26 U.S.C. § 72, that they have been a victim of domestic abuse within the five-year period ending on the withdrawal date.
  • Domestic abuse is defined to include physical, psychological, sexual, emotional, or economic abuse, as well as efforts to control, isolate, humiliate, or intimidate the victim.
Show all 5 facts
  • The act takes effect in 60 days.

Frequently Asked Questions

Who qualifies for the proposed tax exemption on early retirement withdrawals?
Individuals who have not yet retired but make a retirement distribution withdrawal after self-certifying under federal tax rules that they experienced domestic abuse within the preceding five-year period.
What is considered domestic abuse under this legislation?
Physical, psychological, sexual, emotional, or economic abuse, including actions to control, isolate, humiliate, or intimidate the victim, or abuse directed at the victim's child or family member living in the household.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

Currently in committee. The next step in the legislative lifecycle is Floor Vote.

Procedural history

1 action
  1. Feb 20, 2025HouseCommittee
    Referred to FINANCE, Feb. 20, 2025

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Connected Entities

Department of Revenue, Internal Revenue Code of 1986
OrganizationDepartment of Revenue“Administers state taxation under the Tax Reform Code of 1971.”Map →
OrganizationInternal Revenue Code of 1986“Federal tax code referenced for definitions and self-certification standards.”Map →

Sources

Open source document

www.palegis.us

Analysis Score

0–100
  • Significance45
    How much this matters to a regular citizen
  • Controversy10
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz25
    Current news / social attention level

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