Bill > HB426

This bill modifies Missouri's income tax provisions for private pension taxation, introducing several key changes. The bill allows taxpayers to subtract a maximum of six thousand dollars from their Missouri adjusted gross income for retirement allowances from privately funded sources for tax years between 2002 and 2025, with eligibility based on income thresholds that vary by filing status. For tax years beginning on or after January 1, 2026, the bill provides a full 100% exemption for retirement allowances from privately funded sources, removing previous income limitations. The bill also defines various types of retirement income, including 401(k) plans, deferred compensation plans, Keogh plans, defined pension plans, and individual retirement arrangements (IRAs), while specifically excluding Roth IRAs. Additionally, the bill maintains provisions for handling lump sum distributions and ensures that Social Security benefits and rollovers between retirement plans are treated appropriately for tax purposes. The changes aim to provide more generous tax treatment for retirees and their pension income, gradually expanding the exemptions over time.

Labor and Employment

https://house.mo.gov/Bill.aspx?bill=HB426&year=2025&code=R