Bill > HB146

This bill amends Kentucky Revised Statutes (KRS) 141.019 to increase the tax exclusion for retirement distributions. Specifically, for taxable years beginning on or after January 1, 2026, individuals will be able to exclude up to $41,110 from their gross income for total distributions from pension plans, annuity contracts, profit-sharing plans, retirement plans, or employee savings plans. This represents an increase from the current exclusion amount of $31,110, which has been in effect since January 1, 2018. The bill defines "distributions" broadly to include lump-sum distributions from pension or profit-sharing plans, individual retirement account distributions, and disability pension distributions. This change aims to provide additional tax relief for retirees by allowing them to exclude a larger portion of their retirement income from state income tax, potentially making Kentucky more financially attractive for retirees and helping to ease the tax burden on those living on fixed incomes.

Budget and Finance

https://apps.legislature.ky.gov/record/25RS/hb146.html