Increases the tax exemption for pensions and annuities for individuals aged fifty-nine and one-half or older.

This bill amends the tax law to increase the tax exemption for pensions and annuities for individuals aged fifty-nine and one-half or older. The exemption will rise from $20,000 to $25,000 in 2027, $30,000 in 2028, $35,000 in 2029, and $40,000 for each subsequent year. This applies to periodic payments attributable to personal services performed before retirement, from either an employer-employee relationship or contributions to a retirement plan deductible for federal income tax purposes. The exemption does not include lump sum distributions.

Increases the tax exemption for pensions and annuities for individuals aged fifty-nine and one-half or older.

This bill amends the tax law to increase the tax exemption for pensions and annuities for individuals aged fifty-nine and one-half or older. The exemption will rise from $20,000 to $25,000 in 2027, $30,000 in 2028, $35,000 in 2029, and $40,000 for each subsequent year. This applies to periodic payments attributable to personal services performed before retirement, from either an employer-employee relationship or contributions to a retirement plan deductible for federal income tax purposes. The exemption does not include lump sum distributions.