RS 47:297.26: Tax deduction; hardship distributions from retirement accounts

A. There shall be allowed a deduction from tax table income for amounts that a qualifying resident taxpayer receives in a taxable year through hardship distributions from one or more retirement accounts.

B. For purposes of this Section, the following terms shall have the meanings ascribed to them in this Subsection:

(1) "Hardship distribution" means a withdrawal from a retirement plan participant's elective deferral account made because of an immediate and serious financial need as determined in accordance with the policies of the plan.

(2) "Qualifying taxpayer" means a taxpayer who has been diagnosed with a terminal illness by a licensed physician. In the case of married joint filers, "qualifying taxpayer" shall also mean a taxpayer's spouse who has been diagnosed with a terminal illness by a licensed physician.

(3) "Terminal illness" shall have the meaning ascribed in R.S. 40:1169.3.