April 22, 1992
TO: PENSION COMMITTEE NO. 16-92
RE: VIRGINIA AMENDS PENSION WITHHOLDING REQUIREMENTS
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As we previously reported, Virginia enacted legislation in
1991 requiring payors of pension and annuity distributions to
withhold Virginia income tax for Virginia residents subject to
federal withholding, effective January 1, 1992. (See Institute
Memorandum to Pension Committee No. 10-92, dated February 18,
1992.) Attached is a copy of Senate Bill 289, which was approved
March 30, 1992 and provides an exception from the general
requirement for payments from individual retirement plans and
simplified employee pensions, effective January 1, 1992.
We will keep you informed of further developments.
Kathy D. Ireland
Associate Counsel - Pension
Attachment