An Act Regarding the Taxation of Out-of-state Pensions
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 36 MRSA §5122, sub-§2, ¶OO is enacted to read:
OO. An amount equal to the amount of the taxpayer’s contribution to an employee retirement plan or an individual retirement account, as those terms are defined in paragraph M-1, upon which taxes have been paid to another jurisdiction.
Sec. 2. Application. This Act applies to tax years beginning on or after January 1, 2015.
summary
This bill avoids double taxation of certain employee contributions to retirement benefit plans made in other states by exempting from Maine income tax the portion of retirement benefits attributable to the taxpayer’s contribution to an employee retirement plan or an individual retirement account that was taxed by another jurisdiction.