Status of State Tax Law Conformity with Roth IRA Provisions

Washington, DC, June 18, 1999 - Currently all of the states that required conformity legislation to conform the individual income tax provisions of their tax code to the federal tax treatment of the Roth IRA in the Internal Revenue Code have passed and signed applicable legislation into law. The tables below provide final bill information concerning applicable conformity legislation in each state that required such legislation. These tables include general information as of June 18, 1999; further investigation or consultation with counsel is recommended before relying on this information.

Roth IRA Distributions Automatically Exempt
from State Taxation

States with no Income Tax	Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming
States that conform to the federal code for the current year and attach at AGI	Connecticut, Delaware, Illinois, Kansas, Louisiana, Maryland, Michigan, Missouri, Montana, Nebraska, New Mexico, New York, Ohio, Oklahoma, Virginia
States that conform to the federal code for the current year and attach at FTI	Colorado, Utah
States where state income tax is calculated as a percentage of federal liability	North Dakota, Rhode Island, Vermont
States that don't tax retirement income	Mississippi, Pennsylvania

Legislation Conforms State Income Tax Code
with Internal Revenue Code as of 12/31/97 or 1/1/98

State	Bill Number	Status
Arizona	Senate bill 1229 (previously Senate bill 1225)	passed both houses, signed into law
District of Columbia	D.C. Act 13-46	effective for a 225-day period beginning March 22, 1999 (the District of Columbia intends to pass final conformity legislation this year)
Georgia	Act 923 (previously House bill 1596)	House bill 1596 passed both houses and was signed into law
Hawaii	Act 113 (previously Senate bill 3004)	Senate bill 3004 passed both houses and was signed into law
Idaho	House bill 489	passed both houses, signed into law
Indiana	House Enrolled Act 1157	passed both houses, signed into law
Iowa	Senate File 2357	passed both houses, signed into law
Kentucky	House bill 170	passed both houses, signed into law
Maine	Legislative Document 1908/ S.P. 683	passed both houses, signed into law
Minnesota	House file 3840 (previously House file 2694)	passed both houses, signed into law
North Carolina	House bill 1326	passed both houses, signed into law
South Carolina	Act 268	House bill 4466 passed both houses and was signed into law
West Virginia	Engrossed Senate bill 207	passed both houses, signed into law
Wisconsin	Act 237 (formerly Assembly bill 768)	Assembly bill 768 passed both houses and was signed into law

Legislation Adds Roth IRA Provisions to State Tax Code
with Internal Revenue Code as of 12/31/97 or 1/1/98

State	Bill Number	Status
Alabama	Rev. Act 98-299 (previously House bill 642)	House Bill 642 passed both houses and was signed into law
California	Senate bill 1233; Senate bill 93 (technical corrections bill)	Both bills passed both houses and were signed into law.
Massachusetts	House bill 5709	passed both houses, signed into law
New Jersey	Senate bill 840	passed both houses, signed into law

Legislation Conforms State Income Tax Code to
with Internal Revenue Code as of 12/31/98 or 1/1/99

State	Bill Number	Status
Arkansas	Act 513 (Senate bill 467)	Senate bill passed both houses and was signed into law. The Arkansas Dept. of Finance and Regulation's emergency regulation regarding Roth IRAs still applies. A taxpayer who converts a traditional IRA to a Roth IRA in 1998 must include the same amount for state income tax purposes as was reported for federal tax purposes. The state tax that is due may be pad, at the taxpayer's election, on or before May 15, 1999, or in 4 equal installments over 4 years beginning on May 15, 1999. Reg. 1998-2, Arkansas Dept. of Finance and Administration, Feb. 25, 1998.
Oregon	House bill 2137	passed both houses, signed into law