Rev. & Tax. Code, § 17509.5 · Chapter 5. Deferred Compensation

Rev. & Tax. Code, § 17509.5

Verbatim from the official edition

Text — As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)

(a) For taxable years beginning on or after January 1, 2026, Section 530A of the Internal Revenue Code, relating to 530A accounts, added by Section 70204(a)(1) of Public Law 119-21, shall apply, except as otherwise provided.

(b) The amount of the additional tax imposed under Section 530A(d)(2) of the Internal Revenue Code, relating to tax treatment of allowable distributions, as applicable for federal income tax purposes for the same taxable year, shall be computed using a rate of 2.5 percent in lieu of the rate provided in that section.

(c) Section 530A(d)(5)(C) of the Internal Revenue Code, relating to distributions of excess contributions, shall not apply.

(d) Section 530A(g) of the Internal Revenue Code, relating to trustee selection, shall not apply.

(e) A copy of the report required to be filed with the Secretary of the Treasury under Section 530A(i) of the Internal Revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.

Notes and commentary — not statutory text

History

Added by Stats. 2026, Ch. 85, Sec. 6. (SB 180) Effective July 13, 2026.

Source of truth

Edition: As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
Official file: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC&sectionNum=17509.5.
Text hash: sha256 a5b1ca715e6058482820ea3083c8e65f79a712ba34cff578c0c56fca9a8144bc
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Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.