REPORT TITLE:
TAX PROTECTION-ROTH IRA'S


DESCRIPTION:
Amends the State Internal Revenue Code compliance statute to
confer the same protection to qualified Roth IRA distributions as
already exist under federal law.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1778
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO THE TAX PROTECTION OF ROTH IRA'S. 


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The purpose of this bill is to amend the state
 
 2 Internal Revenue Code compliance statute to confer the same
 
 3 protection to qualified distributions from Roth IRA's as already
 
 4 exist under federal law.  Without this mirroring tax protection
 
 5 against the Hawaii state income tax, the built-in tax incentives
 
 6 to increase savings would be meaningless in Hawaii.
 
 7      SECTION 2.  Chapter 235-2.4, Hawaii Revised Statutes, is
 
 8 amended by adding a new sub-section to be appropriately
 
 9 designated and to read as follows:
 
10           §235-2.4  Operation of certain Internal Revenue Code
 
11 provisions.
 
12      (_)  Section 408(d) (with respect to Roth
 
13 Individual Retirement Accounts) of the Internal
 
14 Revenue Code shall be operative for the purpose of
 
15 this chapter."
 
16      SECTION 3.  New statutory material is underscored.
 
17      SECTION 4.  This Act shall take effect upon its approval.
 
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19                           INTRODUCED BY:  _______________________