1. (a) For tax years beginning January 1, 2003, and thereafter, individual recipients of benefits from a public or private employment-related retirement system, plan, or program shall be allowed to deduct or recover their cost of contribution in the plan when computing income for state income tax purposes.
2. (b) The deduction allowed for Arkansas state income tax purposes for cost of contribution for each tax year shall be the same amount as allowed as a deduction for cost of contribution for federal income tax purposes for the same tax year pursuant to Internal Revenue Code § 72 as in effect on July 1, 2003.
3. (c) The recovery of cost of contribution for state income taxes shall be available only for individual taxpayers who have unrecovered cost in their plan equal to or exceeding the allowable deduction in subsections (a) and (b) of this section.

4. (d) Nothing in this part shall be deemed to limit an individual taxpayer's entitlement to any other deduction or exemption allowed by state law with regard to benefits received from public or private employment-related retirement:

   1. (1) Systems;
   2. (2) Plans; or
   3. (3) Programs.

Codification Notes: Internal Revenue Code § 72 can be found at 26 U.S.C. § 72.