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TAX INFORMATION RELEASE NO. 96-5 - hawaii.gov

BENJAMIN J. CAYETANOGOVERNORMAZIE HIRONOLT. GOVERNORRAY K. KAMIKAWADIRECTOR OF TAXATIONSUSAN K. INOUYEDEPUTY DIRECTORDEPARTMENT OF TAXATIONSTATE OF Box 259 Honolulu, Hawaii 96809 August 14, 1996 TAX INFORMATION RELEASE NO. 96-5RE: Taxation of Pensions Under the Hawaii Net Income Tax Law: Deferred CompensationArrangements: Rollover IRAs: Sub-Accounts of Pension Plans; Social Security and RailroadRetirement Act Benefits: Limitation on Deductions for Contributions to a Nonqualified PlanThis Tax INFORMATION RELEASE (TIR) answers questions that have arisen since adoption of newHawaii Administrative Rules (HAR) sections 18-235-7-02 and 18-235-7-03, regarding treatment under theNet Income Tax Law of public and private retirement What Are Some Examples of Elective Arrangements that Are Not Eligible for the PensionExclusion?

Tax Information Release No. 96-5 August 14, 1996 Page 3 Pension trusts created before June 25, 1959,that are exempt from federal taxation (section 501(c)(18), IRC, to the extent that the employee is allowed a deduction under sections 219(b)(3)

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