Thanks for your thoughtful reply. The hard part of my question was :what circumstances would satisfy condition (j)(ii)(B)? i.e., did another state tax amounts contributed to the qualified benefit plan when the contributions were made? I note that the statute is written so that it could apply to state taxes imposed on both employee and employer contributions (although that wouldn't make a lot of sense to me).
I was unaware that there were states that taxed employee contributions to 401(k) plans. Maybe that's the situation this statutory language is intended to address, so it would only apply to distributions from employer plans in those few states. In my case, I have distributions from a defined benefit plan where all the contributions were made by my (Wisconsin) employer, so I'm thinking I don't get to take the deduction from my Utah taxes.
