AZ LEG Military Pension Distributions

On Mar. 25, AZ LEG passed bill on military retirement distributions.

  • AZ LEG passed SB1358 on military income tax withholding, retirement distributions.
  • Amends AZ LEG 43-404 Extension of withholding to military retirement pensions.
  • Bill Provisions
  • Payment from a pension or retirement account subject to withholding should be treated as if it were payment of wages by employer to employee for a payroll period.
  • The request for payment should be made in writing to the person that is making the payment or retirement account distributions payment, must include completed form.
  • Distributions for a retirement account are eligible for retirement withholding, only to the extent that the amount is includable in AZ gross income of the individual.
  • A request to initiate, adjust or terminate a withholding may be executed in writing through paper or electronic means prescribed by the Department of Revenue.
  • Legislative History
  • On Jan. 30, 2024, bill introduced in House; On Feb. 29, 2024, bill passed in the House.
  • On Mar. 4, 2024, bill introduced in the Senate; on Mar. 21, 2024 bill passed Senate.
  • On Mar. 25, 2024, bill was sent to governor and awaits governor's action.
  • Effectiveness
  • Bill effective on Sep. 14, 2024 (91 days after Jun. 15 adjournment).
  • Mar. 29, 2024 Governor Approval
  • On Mar. 29, 2024, AZ LEG reported governor signed SB 1358, assigned to laws, Ch 55.
  • Document dated Mar. 29, 2024, received from AZ LEG Apr. 3, summarized on Apr. 5.

Regulators AZ LEG
Entity Types CNSM; Pension
Reference Bill, Ch 55, 3/29/2024; Bill, SB1358, 3/25/2024; Citation: AZ LEG 43-404;
Functions Compliance; Financial; Legal
Countries United States of America
Products Pensions; Retirement Plan
Regions Am
Rule Type Final
Rule Date 3/25/2024
Effective Date 9/14/2024
Rule Id 205779
Linked to N/A
Reg. Last Update 3/29/2024
Report Section US Consumer

Last substantive update on 04/07/2024