SB 155 Summary

• Provides an 80 percent income tax exemption for distributions from defined contribution deferred compensation plans, effective January 1, 2023.

• Exemption applies only to individual taxpayers who are 65 years of age or older, with a maximum exemption capped at 80 percent of distributions.

• Amends Section 40-18-19 of the Code of Alabama 1975 to add the new exemption as subsection (13)(a) and (b).

• Department of Revenue authorized to enact rules necessary to implement and administer the exemption.

• Act becomes effective on the first day of the third month following passage and approval by the Governor, or upon becoming law without gubernatorial action.