Bill > HB2059

This bill modifies Missouri's income tax deductions for private pensions by increasing the maximum tax exemption for retirement allowances from different sources. Specifically, for tax years beginning on or after January 1, 2027, the bill raises the maximum deduction from $6,000 to $12,000 for retirement allowances from privately funded sources. The bill also adjusts the income thresholds for eligibility, increasing them for different filing statuses. For single, head of household, or qualifying widow(er) filers, the income threshold will rise from $25,000 to $50,000, while married couples filing combined will see their threshold increase from $32,000 to $64,000. For married individuals filing separately, the threshold will increase from $16,000 to $32,600. Additionally, starting in 2024, the bill removes income restrictions, meaning taxpayers can claim the maximum exemption regardless of their filing status or income level. The bill defines retirement benefits broadly, including 401(k) plans, deferred compensation plans, Keogh plans, defined pension plans, and IRAs, but excludes Roth IRAs. These changes aim to provide more generous tax treatment for retirees' income.

Labor and Employment

https://house.mo.gov/Bill.aspx?bill=HB2059&year=2026&code=R