Credit unions in Michigan will have to handle individual retirement account calculations differently as two state laws go into effect on Oct. 1, 2012.
The Public Act 223 of 2012, signed into law on June 26 by Gov. Rick Snyder, decreases the income tax rate from 4.35 % to 4.25%. Snyder also signed the Public Act 224 of 2012, a bill that increases the personal and dependency exemption for personal income tax payers up to $3,950 per exemption. As a result, calculating the withholding tax for IRA withdrawals and distributions will be affected. Michigan also mandated income tax on retirement income, pensions and IRA distributions.
Read the full article: New Michigan Laws to Adjust IRA Calculations