Committee: Finance and Taxation EducationSponsor: Orr
Analyst: JT MathisDate: 01/17/2022


Senate Bill 18 as introduced would allow a taxpayer who is 65 years old or older to exempt from income tax $10,000 of the distributions from a defined contribution deferred compensation plan, up to the caps set by this bill. Beginning with Tax Year 2023 the maximum exemption amount would be $5,000 and would increase to a maximum of $10,000 in Tax Year 2024.

According to the Department of Revenue, this bill would decrease receipts to the Education Trust Fund by a maximum of ($25,000,000) in FY 2024 and by a maximum of ($40,000,000) in FY 2025 and each fiscal year thereafter.

 Arthur Orr, Chairperson
Finance and Taxation Education