Bill > HB2205

This bill modifies Missouri's income tax provisions related to retirement income, introducing several key changes for tax years from 2002 through 2026 and beyond. For tax years through December 31, 2026, taxpayers can subtract up to $6,000 in retirement allowances from privately funded sources, with eligibility based on filing status and adjusted gross income (AGI) thresholds. For example, single filers with AGI under $25,000 and married joint filers with AGI under $32,000 qualify for the full deduction. Starting January 1, 2027, the bill provides a full 100% exemption for retirement allowances from privately funded sources, regardless of income level. The bill also addresses retirement benefits from public sources, allowing increasing percentages of exemption over time, and ultimately providing a 100% exemption for retirement benefits from non-privately funded sources for tax years beginning in 2012-2026, with full exemption starting in 2027. The legislation defines various types of retirement income, including 401(k) plans, IRAs, and pension plans, and includes provisions for adjusting exemption levels based on federal tax code changes and Consumer Price Index fluctuations.

Labor and Employment

https://house.mo.gov/Bill.aspx?bill=HB2205&year=2026&code=R