SB483 Summary

• Amends Section 40-18-19 of the Alabama Code to add a tax exemption for retirement plan payments from institutions of higher education, effective January 1, 2011.

• Exempts all payments made on or after January 1, 2011 to a retiree or beneficiary from a retirement plan established at a higher education institution if the plan complies with Section 414(i) of the Internal Revenue Code and was established under Section 403(b).

• Requires that both the retiree and the employer made contributions to the qualified retirement plan in order for the exemption to apply.

• Becomes effective on the first day of the third month following passage and approval by the Governor, or upon otherwise becoming law.