HB98 Alabama 2010 Session

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

To amend Section 40-18-19, Code of Alabama 1975, to allow an increased exemption for tax years beginning after December 31, 2009, that will annually phase in, if certain conditions are attained, and increase up to a maximum of $10,000 for 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.