SB579 Summary

• Amends Section 40-18-19 of the Alabama Code to add a new exemption for retirement allowances, pensions, annuities, and optional allowances that are exempt from federal income taxation under 26 U.S.C. §403(B).

• The exemption applies beginning January 1, 2011, and continues thereafter for all such federally-exempt retirement income.

• Aligns Alabama state income tax treatment with federal tax treatment by exempting retirement income that qualifies for federal exemption under §403(B) plans.

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