HB92 Alabama 2016 Session

Sponsors

Session

Regular Session 2016

Title

Income tax, defined benefit plans, distributions, including retirement under Teachers and State Employees Retirement, exemption limited, contributions to defined benefit plans exempt from income under certain conditions, Secs. 16-25-23, 36-27-28, 36-27-170, 40-18-14, 40-18-19 am'd; Sec. 40-18-20 repealed

Description

<p class="bill_description"> Under current law for Alabama income tax purposes, all individuals are exempt from the reporting of distributions received from a defined benefit plan to the extent it is taxable for federal income tax purposes. Distributions received from a defined contribution plan are not exempt from reporting</p><p class="bill_description"> This bill would remove the exemption from the reporting and taxation of such distributions and require such benefits be reported on an individual’s income tax returns effective for the 2016 calendar tax year and provide an exemption of the first $50,000 of pension and annuity income</p><p class="bill_description"> A portion of such distributions may be exempt from taxation for the recapture of any basis, under certain circumstances</p><p class="bill_entitled_an_act"> To amend Sections 16-25-23, 36-27-28, 36-27-170, 40-18-14, and 40-18-19 repeal Section 40-18-20 Code of Alabama 1975, to require individuals, including state retirees, to include in gross income, distributions received from defined benefit plans in determining their tax liability for the calendar year; to exempt the first $50,000 in pension and annuity income; and generally to allow a 60 month period in which to recapture any basis in reporting distributions from a defined benefit plan. </p>

Subjects

Taxation