Status of State Tax Law Conformity with Roth IRA Provisions

Washington, DC, November 16, 1998 - Most states have passed legislation that conforms the individual income tax provisions of their tax code to the Internal Revenue Code in order to conform state tax treatment of the Roth IRA with federal tax treatment. The tables below provide information concerning the status of applicable conformity legislation in each state that requires such legislation. These tables include general information as of October 16, 1998; 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	passed both houses, signed into law
District of Columbia	Bill 12-455	approved by City Council; awaiting approval by DC Control Board
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	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

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; Assembly bill 1469 (technical corrections bill)	Senate bill 1233 passed both houses and was signed into law; Assembly bill 1469 passed both houses and was vetoed by governor
Massachusetts	House bill 5709	passed both houses, signed into law
New Jersey	Senate bill 840	passed both houses, signed into law

No Legislation Pending

State	Bill Number	Status
Arkansas	N/A	Next legislative session scheduled for 1999. Arkansas Dept. of Finance and Regulation has issued an emergency regulation regarding Roth IRAs (Reg. 1998-2, 2/25/98). A taxpayer who converts a traditional IRA to a Roth IRA in 1998 must include the same amount of state tax income tax purposes as was reported for federal tax purposes. The state tax that is due may be paid, at the taxpayer's election, on or before 5/15/99 or in 4 equal installments over 4 years beginning on 5/15/99.
Oregon	N/A	Next legislative session scheduled for 1999. Oregon Revised Statute 316.012 provides that the intent of the Oregon Legislature is to conform Oregon state personal income tax provisions to the federal code for years after 12/31/96.