Currently, distributions from defined contribution deferred compensation plans are taxable as income
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
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.
|February 3, 2021||H||Read for the first time and referred to the House of Representatives committee on Ways and Means Education|
|Bill Text||HB296 Alabama 2021 Session - Introduced|