Bill > HB2657

This bill modifies the income tax deductions for private pensions in Missouri. The key provisions are: 1. It increases the maximum deduction for retirement allowances from privately funded sources from $6,000 to $12,000 per year for tax years beginning on or after January 1, 2025. 2. It increases the income eligibility thresholds for the maximum deduction from $25,000 to $50,000 for single/head of household/qualifying widow(er) filers, and from $32,000 to $64,000 for married filing combined filers. 3. It allows taxpayers to deduct 100% of their retirement benefits from non-private sources (e.g. Social Security) up to the maximum Social Security benefit, regardless of their income level, starting in 2012. 4. It provides an exemption for lump sum distributions from retirement plans, taxing them at 10% of the federal liability. The bill aims to provide more generous tax treatment for both private and public-sector retirement income in Missouri.