HB296 Alabama 2021 Session
In Committee
Bill Summary
Sponsors
Session
Regular Session 2021
Title
Deferred compensation plans, portion of income exempt from income tax, Sec. 40-18-19 am'd.
Description
<p class="bill_description"> Currently, distributions from defined
contribution deferred compensation plans are
taxable as income</p><p class="bill_description">
This bill would provide that 70 percent of
those distributions, up to $30,000, is exempt from
income tax for individuals who are 65 years of age
or older. This exemption will be phased in over a
10-year period</p><p class="bill_entitled_an_act"> To amend Section 40-18-19, Code of Alabama 1975,
relating to exemptions from state income taxation; to provide
that 70 percent of the distribution from a defined
contribution deferred compensation plan, up to $30,000, is
exempt from state income tax for individuals who are 65 years
of age or older; and to phase in the exemption over a 10-year
period.
</p>
Subjects
Taxation
Bill Actions
| Action Date | Chamber | Action |
|---|---|---|
| February 3, 2021 | H | Read for the first time and referred to the House of Representatives committee on Ways and Means Education |
Bill Calendar
| Type | Date | Location | Description |
|---|---|---|---|
| Hearing | May 4, 2021 | Room 200 at 12:00 | House W&ME Hearing |
Bill Text
Bill Documents
| Type | Link |
|---|---|
| Bill Text | HB296 Alabama 2021 Session - Introduced |
| Fiscal Note | Fiscal Note - HB296 for Ways and Means Education |