Arizonans who have been squirreling away money into tax-deferred retirement accounts may get a cash bonus from the state.
On a party-line vote, the House Ways and Means Committee approved a plan to make distributions of up to $29,200 a year from an Individual Retirement Account exempt from state income taxes. Ditto payments from 401(k) retirement plans.
At the current 2.5% rate for individual income taxes, that translates out to up to $730 a year for married couples filing jointly; single taxpayers would be able to save half that much…