Bill > S1366

This bill proposes to amend Massachusetts General Laws Chapter 62, Section 3B(a) to create an exemption from state income tax for private pension income. Specifically, it would allow individuals under age 60 to exclude up to $2,000 in pension income from their taxable income, while individuals aged 60 or older could exclude up to $12,500 in pension income or "eligible retirement income." Eligible retirement income is broadly defined to include distributions from qualified retirement plans like those under IRC sections 401(k) and 457, as well as dividends, capital gains, interest, and rental income from real property after deducting rental expenses. This change aims to provide tax relief to retirees by reducing the tax burden on their retirement savings.