HB92 Alabama 2016 Session

Summary

Primary Sponsor

Lynn Greer

Republican

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from income under certain conditions, Secs. 16-25-23, 36-27-28, 36-27-170, 40-18-14, 40-18-19 am'd; Sec. 40-18-20 repealed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

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.

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.

A portion of such distributions may be exempt from taxation for the recapture of any basis, under certain circumstances.

Show more Show less

Subjects

Taxation