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Compliance January 11, 2002
Tar Heels Embrace EGTRRA
November 1, 2002 (PLANSPONSOR.com) - Another state
has lined its tax provisions up with the pension provisions
of last year's tax reform package.
Reported by Nevin E. Adams
On September 30, 2002, legislation was enacted that brings North Carolina into conformance with all of the pension and retirement provisions of the Economic Growth and Tax Relief Act of 2001. That leaves just Arkansas, whose state legislature does not convene until next year (2003) out of step with EGTRRA. However, the Arkansas Department of Finance and Administration anticipates that the General Assembly will adopt these provisions retroactively early in the 2003 legislative session.
In announcing the change, North Carolina noted that in an announcement in April 2002, the state’s Department of Revenue addressed the impact on North Carolina income tax returns of the enactment of the federal Economic Growth and Tax Relief Act of 2001. North Carolina’s individual income tax law is tied to the Internal Revenue Code as it exists on a certain date, and on September 30, 2002, legislation was enacted to update the State’s reference to the Internal Revenue Code from January 1, 2001 to May 1, 2002.
As a result, North Carolina has now adopted all of the pension and retirement provisions of the Economic Growth and Tax Relief Act of 2001.