§ 17501.8. — 17501.8. (Added by Stats. 2025, Ch. 231, Sec. 51.)

California § 17501.8.

• Jurisdiction: California
• Code RTC: Revenue and Taxation Code - RTC
• Div. 2.: DIVISION 2. OTHER TAXES
• Part 10.: PART 10. PERSONAL INCOME TAX
• Ch. 5.: CHAPTER 5. Deferred Compensation

Text

(a)
The following amendments made by the Consolidated Appropriations Act, 2023 (Public Law 117-328) shall apply for purposes of this part, Part 10.2 (commencing with Section 18401), and Part 11 (commencing with Section 23001) except as otherwise provided:
(1)
The amendments made by Section 108 of Division T of that act to Section 219(b)(5)(C) of the Internal Revenue Code, relating to indexing IRA catch-up limit.
(2)
The amendments made by Section 109 of Division T of that act to Section 414(v) of the Internal Revenue Code, relating to higher
catch-up limit to apply at 60 to 63 years of age, inclusive.
(3)
The amendments made by Section 117 of Division T of that act to Section 414(v)(2) of the Internal Revenue Code, relating to contribution limit for simple plans.
(b)
(1)
For the purposes of complying with Section 41, as it pertains to the deductions expanded by this section, the Legislature finds and declares as follows:
(A)
The specific goal, purpose, and objective of this bill is to conform state law to changes in federal law in order to reduce complications relating to mismatches in basis of retirement accounts for federal income tax purposes compared to state income
tax purposes.
(B)
The performance indicators used by the Legislature to
determine if the deductions are achieving the stated goal shall be the number of taxpayers making contributions that would, but for the expansion of deductions pursuant to this section, be included in income for state purposes, and the total dollar value of those contributions.
(2)
The Legislative Analyst’s Office shall, no later than October 1, 2029, submit a report to the Legislature, in accordance with Section 9795 of the Government Code, that estimates the number of taxpayers making contributions to retirement accounts that, but for the expansion of deductions provided by this section, would be included in income, and estimates of the total dollar value of those contributions, to the extent data is available.

Legislative History

Added by Stats. 2025, Ch. 231, Sec. 51. (SB 711) Effective October 1, 2025.