Bill > H2472

This bill proposes to amend Massachusetts General Laws Chapter 62, Section 3, Subsection B, to create a new exemption for certain private pension income from taxation. Specifically, individuals under age 60 would be able to exclude up to $2,000 in pension income received from employers, the U.S. government, or state and local governments. For individuals aged 60 or older, the exemption would increase to $12,500 for pensions from similar sources, as well as for "eligible retirement income." Eligible retirement income is defined broadly to include distributions from qualified retirement plans like 401(k)s and 457 plans, as well as dividends, capital gains, interest, and net rental income. The bill also clarifies that for married couples who own assets jointly, the eligible retirement income will be considered equally split between spouses for the purpose of this exemption. This change aims to provide tax relief on retirement income for Massachusetts residents.