AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX

This bill allows Rhode Island residents with mutual fund individual retirement accounts (IRAs) to voluntarily elect to have state income tax withheld from required distributions. Mutual fund companies would withhold taxes based on an estimated liability, but only if the taxpayer specifically chooses this option. The tax administrator would determine the withholding method, and this election does not change the taxpayer’s overall tax calculation or liability. The provision takes effect January 1, 2026.