I have this question, too. The Utah statutes include the following language (Utah Code Sec. 59-10-114):
(2) There shall be subtracted from adjusted gross income of a resident or nonresident individual:
* * * *
(j) an amount of a distribution from a qualified retirement plan under Section 401(a), Internal Revenue Code, if:
(i) the amount of the distribution is included in adjusted gross income on the resident or nonresident individual's federal individual income tax return for the taxable year; and
(ii) for the taxable year when the amount of the distribution was contributed to the qualified retirement plan, the amount of the distribution:
(A) was not included in adjusted gross income on the resident or nonresident individual's federal individual income tax return for the taxable year; and
(B) was taxed by another state of the United States, the District of Columbia, or a possession of the United States.
As I understand it, a qualified plan under Section 401(a) of the IRC would include both a defined benefit plan and a 401(k) plan. As I understand it, most distributions would satisfy conditions (j)(i) and (j)(ii)(A). What has me stumped is, what circumstances would satisfy condition (j)(ii)(B)? Wouldn't it be unusual for a state to tax amounts contributed to qualified benefit plans? If my employer made the contributions, how would I know how much of it was taxed by a state, or how much of it is attributable to my distribution? I sure would appreciate any insights into how this adjustment is supposed to work.
