Bill > SB620

This bill modifies Missouri's income tax deduction for retirement benefits by making several key changes. The bill increases the maximum deduction for retirement allowances from privately funded sources from $6,000 to $12,000 for tax years beginning on or after January 1, 2026. It also raises the income thresholds for qualifying for the full deduction, roughly doubling the limits for single, married filing combined, and married filing separately taxpayers. For example, single filers can now qualify with incomes up to $50,000 (previously $25,000) starting in 2026. The bill continues to define retirement benefits broadly, including 401(k) plans, deferred compensation plans, Keogh plans, defined pension plans, and traditional IRAs. Starting in 2024, the deduction will be available regardless of a taxpayer's filing status or income level. Additionally, the bill maintains provisions for handling Social Security benefits and lump sum distributions, and ensures that the retirement benefit exemptions do not affect property tax credit calculations. The changes aim to provide more generous tax treatment for retirees and those nearing retirement in Missouri.