HB 4027 Summary

• Eliminates limitations and restrictions on retirement and pension benefit deductions for individuals under the Michigan Income Tax Act, effective for tax years beginning after December 31, 2014.

• Removes previous age-based restrictions and dollar caps that limited retirement and pension benefit deductions for taxpayers born in 1946 or later.

• Deletes the entire subsection (9) that previously imposed graduated deduction limits based on taxpayer birth year and age, including special caps for those born between 1946-1952 and those under age 67.

• Retains the definition of what constitutes "retirement or pension benefits" under subsection (8), including qualified pension plans, IRAs, 403(b) annuities, and state/federal government pension plans.

• Also eliminates the restriction on senior citizen deductions for interest, dividends, and capital gains that was previously unavailable to seniors born after 1945.