Level 15

Retirement tax questions

Prior to 1981, Georgia had not adopted conformity to federal law regarding deductions for contributions to IRA's, Keogh's, SEP's and S Corporation retirement plans.

From 1981 to 1986, Georgia adopted federal law, as it existed on January 1, 1981, regarding those deductions. Therefore, a difference between federal and Georgia law existed when changes were made to federal law during 1981 through 1986.

Georgia allows a subtraction from your plan distributions income equal to the contributions made to the plans during 1981 through 1986 that were not deductible by Georgia.

The purpose of this adjustment to Georgia income is to allow a one-time deduction, as plan distributions are received, of previous nondeductible plan contributions.

The current year subtraction from income cannot exceed the current year taxable plan distributions received. The total subtractions from income cannot exceed the total plan contributions that were nondeductible for Georgia, but deductible on your federal return during 1981 through 1986.