316.159
Subtraction for certain retirement distributions contributed to retirement plan
during period of nonresidency; substantiation rules. (1)(a) In addition to other
modifications to federal taxable income contained in this chapter, there shall
be subtracted from federal taxable income of a resident individual the
distributions received by the individual from a plan or trust described under
subsection (2) of this section to the extent that:
(A) The
distributions consist of contributions made in a tax period during which the
individual was a nonresident; and
(B) The
distributions consist of contributions made in a tax period for which no
deduction, exclusion or exemption for the contributions was allowed or
allowable to the individual for purposes of a state personal net income tax
imposed during the period by the state of which the individual was a resident;
and
(C) No deduction,
exclusion, subtraction or other tax benefit has been allowed for the
distributions by another state before the individual becomes a resident of this
state.
(b) For purposes
of this section, if any distributions (lump sum or periodic) received by a
resident individual from a plan or trust described in subsection (2) of this
section meet the requirements of paragraph (a) of this subsection, then for
purposes of the subtraction allowed by this section, those distributions shall
be considered to be the distributions first received by the individual after
the individual has become a resident of this state.
(c) For purposes
of ORS 316.082 (credit for taxes paid to another state), any distributions
received by a resident individual from a plan or trust described in subsection
(2) of this section which meet the requirements of paragraph (a) of this
subsection shall be considered income subject to tax under this chapter
notwithstanding the exclusion under this section.
(2) A plan or
trust is described in this section if:
(a) The plan or
trust is an individual retirement account described in section 408 of the
Internal Revenue Code;
(b) The trust
forms part of a pension or profit-sharing plan that provides contributions or
benefits for employees, some or all of whom are owner-employees, as defined
under section 401(c)(3) of the Internal Revenue Code;
(c) The plan or
trust is an annuity contract purchased on behalf of an employee of a charitable
organization or public school as described under section 403(b) of the Internal
Revenue Code; or
(d) The plan or
trust is an eligible deferred compensation plan established and maintained by
an employer that is a state or local government, a political subdivision
thereof, or a tax exempt organization, on behalf of an employee of the
employer, as described under section 457 of the Internal Revenue Code.
(3) The following
contributions are not contributions to which the subtraction under subsection
(1) of this section is accorded:
(a) Contributions
made during a tax period, or portion thereof, for which the taxpayer was a
nonresident required to file an Oregon return, to the extent that a deduction
or exclusion was allowable under this chapter for those contributions; or
(b) Contributions
for which the taxpayer was allowed a credit for taxes paid to another state
under ORS 316.082.
(4) A subtraction
shall not be allowed under this section for interest or other income arising
from investment of contributions made to a plan or trust described in
subsection (2) of this section.
(5) For purposes
of the subtraction allowed under subsection (1) of this section:
(a) Distributions
received by the taxpayer from a plan or trust described in subsection (2) of
this section shall be considered to initially consist of a recovery of
contributions.
(b) Once the
distributions equal the cumulative contributions, all further distributions
shall constitute interest or other income arising from investment of the
contributions.
(6) The
Department of Revenue may adopt rules requiring substantiation of the
contributions and tax treatment upon which the subtraction under this section
is based. Failure to provide substantiation as required under the rules shall
result in denial of the subtraction otherwise allowed under this section. The
requirement for substantiation may be waived partially, conditionally or
absolutely, as provided under ORS 315.063. [1991 c.838 §2; 1995 c.54 §11; 1995
c.815 §6]
316.160 [1953 c.304 §18; 1965 c.26 §3;
repealed by 1969 c.493 §99]
COLLECTION OF TAX AT
SOURCE OF PAYMENT
(Generally)
Notes of Decisions
Cited in
5
cases (
2 in the last 5 years), 1995–2025 · leading case:
Glick v. Dep't of Revenue, 13 Or. Tax 288 (Or. T.C. 1995).
Glick v. Dep't of Revenue, 13 Or. Tax 288 (Or. T.C. 1995).
· cites it 9× “The primary legal issue is whether taxpayers are entitled to subtract all or any portion of the $58,812 under ORS 316.159. ORS 316.159 2 provides in part: “(1)(a) In addition to other modifications to federal taxable income contained in this chapter, there shall be subtracted…”
Leaf v. Dep't of Revenue, 15 Or. Tax 53 (Or. T.C. 1999).
· cites it 5× “ISSUE Are IRA distributions to an Oregon resident, which consist of contributions made while a resident of another state that imposes no income tax, subject to personal income tax in Oregon? ANALYSIS The parties agree that the issue is governed by ORS 316.159. 1 However, they…”
Ward v. Dept. of Rev., No. TC-MD 250187N (Or. T.C. Nov. 14, 2025).
· cites it 36× “ANALYSIS The issue presented is whether, under ORS 316.159, Plaintiffs may claim a subtraction from taxable income for an IRA distribution when the original contributions were made to a 401(k) plan later rolled into the IRA.”
Fisher v. Dept. of Rev., No. TC-MD 230472N (Or. T.C. July 29, 2024).
· cites it 18× “) Defendant subsequently revised its reasoning to state that Plaintiff is not allowed to subtract her distributions because Internal Revenue Code (IRC) 401(a) retirement plans are not one of the “accepted plans” under ORS 316.159. (Def’s Resp to Ptf’s Mot for Summ J at 2.”
Hart v. Dep't of Revenue, 16 Or. Tax 206 (Or. T.C. 2000).
· cites it 10× “The applicable statute is ORS 316.159, 1 which provides, in relevant part: “(l)(a) In addition to other modifications to federal taxable income contained in this chapter, there shall be subtracted from federal taxable income of a resident individual the distributions received by…”
Or. Rev. Stat. § 316.159(1): 1 case
Ward v. Dept. of Rev., No. TC-MD 250187N (Or. T.C. Nov. 14, 2025).
“ANALYSIS The issue presented is whether, under ORS 316.159, Plaintiffs may claim a subtraction from taxable income for an IRA distribution when the original contributions were made to a 401(k) plan later rolled into the IRA.”
Or. Rev. Stat. § 316.159(1)(a): 3 cases
Ward v. Dept. of Rev., No. TC-MD 250187N (Or. T.C. Nov. 14, 2025).
“ANALYSIS The issue presented is whether, under ORS 316.159, Plaintiffs may claim a subtraction from taxable income for an IRA distribution when the original contributions were made to a 401(k) plan later rolled into the IRA.”
Fisher v. Dept. of Rev., No. TC-MD 230472N (Or. T.C. July 29, 2024).
“) Defendant subsequently revised its reasoning to state that Plaintiff is not allowed to subtract her distributions because Internal Revenue Code (IRC) 401(a) retirement plans are not one of the “accepted plans” under ORS 316.159. (Def’s Resp to Ptf’s Mot for Summ J at 2.”
Hart v. Dep't of Revenue, 16 Or. Tax 206 (Or. T.C. 2000).
“The applicable statute is ORS 316.159, 1 which provides, in relevant part: “(l)(a) In addition to other modifications to federal taxable income contained in this chapter, there shall be subtracted from federal taxable income of a resident individual the distributions received by…”
Or. Rev. Stat. § 316.159(1)(a)(A): 1 case
Ward v. Dept. of Rev., No. TC-MD 250187N (Or. T.C. Nov. 14, 2025).
“ANALYSIS The issue presented is whether, under ORS 316.159, Plaintiffs may claim a subtraction from taxable income for an IRA distribution when the original contributions were made to a 401(k) plan later rolled into the IRA.”
Or. Rev. Stat. § 316.159(1)(a)(B): 1 case
Hart v. Dep't of Revenue, 16 Or. Tax 206 (Or. T.C. 2000).
“The applicable statute is ORS 316.159, 1 which provides, in relevant part: “(l)(a) In addition to other modifications to federal taxable income contained in this chapter, there shall be subtracted from federal taxable income of a resident individual the distributions received by…”
Or. Rev. Stat. § 316.159(1)(a)(C): 1 case
Hart v. Dep't of Revenue, 16 Or. Tax 206 (Or. T.C. 2000).
“The applicable statute is ORS 316.159, 1 which provides, in relevant part: “(l)(a) In addition to other modifications to federal taxable income contained in this chapter, there shall be subtracted from federal taxable income of a resident individual the distributions received by…”
Or. Rev. Stat. § 316.159(2): 3 cases
Ward v. Dept. of Rev., No. TC-MD 250187N (Or. T.C. Nov. 14, 2025).
“ANALYSIS The issue presented is whether, under ORS 316.159, Plaintiffs may claim a subtraction from taxable income for an IRA distribution when the original contributions were made to a 401(k) plan later rolled into the IRA.”
Glick v. Dep't of Revenue, 13 Or. Tax 288 (Or. T.C. 1995).
“The primary legal issue is whether taxpayers are entitled to subtract all or any portion of the $58,812 under ORS 316.159. ORS 316.159 2 provides in part: “(1)(a) In addition to other modifications to federal taxable income contained in this chapter, there shall be subtracted…”
Fisher v. Dept. of Rev., No. TC-MD 230472N (Or. T.C. July 29, 2024).
“) Defendant subsequently revised its reasoning to state that Plaintiff is not allowed to subtract her distributions because Internal Revenue Code (IRC) 401(a) retirement plans are not one of the “accepted plans” under ORS 316.159. (Def’s Resp to Ptf’s Mot for Summ J at 2.”
Or. Rev. Stat. § 316.159(2)(a): 1 case
Ward v. Dept. of Rev., No. TC-MD 250187N (Or. T.C. Nov. 14, 2025).
“ANALYSIS The issue presented is whether, under ORS 316.159, Plaintiffs may claim a subtraction from taxable income for an IRA distribution when the original contributions were made to a 401(k) plan later rolled into the IRA.”
Or. Rev. Stat. § 316.159(3): 1 case
Ward v. Dept. of Rev., No. TC-MD 250187N (Or. T.C. Nov. 14, 2025).
“ANALYSIS The issue presented is whether, under ORS 316.159, Plaintiffs may claim a subtraction from taxable income for an IRA distribution when the original contributions were made to a 401(k) plan later rolled into the IRA.”
Or. Rev. Stat. § 316.159(4): 1 case
Ward v. Dept. of Rev., No. TC-MD 250187N (Or. T.C. Nov. 14, 2025).
“ANALYSIS The issue presented is whether, under ORS 316.159, Plaintiffs may claim a subtraction from taxable income for an IRA distribution when the original contributions were made to a 401(k) plan later rolled into the IRA.”
Or. Rev. Stat. § 316.159(6): 1 case
Ward v. Dept. of Rev., No. TC-MD 250187N (Or. T.C. Nov. 14, 2025).
“ANALYSIS The issue presented is whether, under ORS 316.159, Plaintiffs may claim a subtraction from taxable income for an IRA distribution when the original contributions were made to a 401(k) plan later rolled into the IRA.”
Or. Rev. Stat. § 316.159(l)(a): 1 case
Leaf v. Dep't of Revenue, 15 Or. Tax 53 (Or. T.C. 1999).
“ISSUE Are IRA distributions to an Oregon resident, which consist of contributions made while a resident of another state that imposes no income tax, subject to personal income tax in Oregon? ANALYSIS The parties agree that the issue is governed by ORS 316.159. 1 However, they…”
Annotations are extracted automatically from the opinions in the
Syfert caselaw corpus and ranked by authority, recency, and
treatment. Dots show Syfertize treatment of the citing case itself.