AR SB306

Increases the income tax exemption for retirement and disability benefits from $6,000 to $10,000 for individual retirement accounts and employment-related retirement systems, plans, or programs

Qualifies individual retirement account distributions only after age 59½, with exceptions for distributions due to death or disability; excludes early withdrawals for medical expenses, education, or first-time home purchases

Establishes annual cost-of-living adjustments to the exemption amount beginning in tax year 2015, based on the Consumer Price Index for All Urban Consumers, rounded to the nearest $100

Prohibits cost-of-living adjustments from decreasing the exemption amount; exemption amount remains unchanged if adjustment would result in a decrease

Effective for tax years beginning on or after January 1, 2013