Louisiana Appeals Board Finds Individual Retirement Account Distribution Taxable

The Louisiana Board of Tax Appeals (BTA) determined that a distribution from an Individual Retirement Account (IRA) was a taxable event, and that the husband and wife taxpayers were not entitled to treat the IRA distribution as tax exempt under the Louisiana State Employees’ Retirement System (LASERS). The husband was a state employee who participated in LASERS and rolled over his state retirement funds into an IRA. In 2022 the taxpayers received a gross distribution from the IRA and claimed an exemption, which the DOR denied and assessed tax, penalties, and interest. The taxpayers appealed to the BTA which found ...