This bill conforms the Minnesota definition of “net income” to federal changes made in February 2012 under Public Law 112-95, the FAA Modernization and Reform Act of 2012.  Before the 2012 Act, under a law enacted in 2008, eligible current and former airline employees were permitted to transfer to a Roth IRA up to 100 percent of certain payments received in connection with their airline’s bankruptcy.  Under the new federal law, eligible employees and their surviving spouses may transfer up to 90 percent of airline bankruptcy-related payments to a traditional IRA and claim a refund of the federal taxes they paid on such funds.  Those employees who exercised the Roth IRA rollover opportunity prior to the 2012 Act are also eligible to transfer up to 90 percent of those Roth IRA funds to a traditional IRA and claim a refund of the federal taxes they paid on such transferred funds.

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