HB3055 Summary

• Amends the Illinois Income Tax Act to limit the deduction for certain retirement income for individuals, trusts, and estates to $75,000 if the taxpayer or beneficiary is under age 65, or $100,000 if age 65 or older during the taxable year.

• The retirement income deduction limit applies to distributions from IRAs, pensions, 401(k)s, governmental employee retirement plans, and similar retirement accounts as specified in Internal Revenue Code sections 402, 403, 406, 407, and 408.

• The combined exemption cap under subsections (F) and (L) for individuals cannot exceed $75,000 (under 65) or $100,000 (65 and over), including both retirement income and social security benefits.

• Similar limits apply to trusts and estates, with exemption amounts under subsection (H) capped at $75,000 (under 65) or $100,000 (65 and over).

• Takes effect immediately upon becoming law.