Except for a payment that is exempt under sub. (1) (a), (am), or (an), or that is exempt as a railroad retirement benefit, and subject to the limitations under subd. 54m. b., c., d., and e., for taxable years beginning after December 31, 2024, the amount of the payments or distributions received by an individual each year from a qualified retirement plan under the Internal Revenue Code or from an individual retirement account established under section 408 of the Internal Revenue Code.

If the individual is at least 67 years of age before the close of the taxable year to which the subtraction relates, the individual may claim the subtraction under this subdivision.

An individual described under subd. 54m. b. may claim the subtraction under this subdivision in an amount not to exceed $24,000 for the taxable year, except that if the individual is married and is a joint filer, and both spouses are at least 67 years of age before the close of the taxable year to which the subtraction relates, the total amount claimed by both spouses under this subdivision may not exceed $48,000 for that taxable year, regardless of the amount of the payment or distribution received by each spouse.

An individual who claims the subtraction under this subdivision for a taxable year may not claim any credit, including any eligible carryover of such credit, listed under s. 71.07 for the same taxable year.

For an individual who is a part-year resident of this state, the subtraction under this subdivision for the taxable year may not exceed the amount that is calculated by multiplying $24,000 by a fraction the numerator of which is the individual’s wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual’s total wages, salary, tips, unearned income, and net earnings from a trade or business. A nonresident of this state is not eligible to claim the subtraction under this subdivision.