HB98 Alabama 2010 Session

Summary

Primary Sponsor

Gregory Canfield

Republican

Session

Regular Session 2010

Title

Income tax, retirement income from defined contribution plans, exempt under up to certain amounts, Sec. 40-18-19 am'd.

Description

Current state individual income tax law provides for the exemption of retirement income derived from "defined benefit" pension plans.

However, the same provision is not currently available for "defined contribution plans." For tax years beginning after December 31, 2009, this act would annually phase in, if certain conditions are attained, an increasing exemption up to a maximum of $10,000 of payments made to a retiree or designated beneficiary under a "defined contribution plan," as defined in Section 414(i) of the Internal Revenue Code, as amended from time to time.

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Subjects

Taxation