HB 5534 Summary

• Modifies income tax deductions for retirement and pension benefits by expanding eligibility for people born between 1946 and 1961, rather than the previous 1946-1952 cutoff.

• For people born 1946-1961, allows deductions up to $20,000 (single) or $40,000 (joint) before age 67, then unlimited deductions after age 67 against all income types.

• For people born 1962 and later, establishes a $15,000-$30,000 deduction limit for ages 62-66 (depending on filing status and whether both spouses receive government pensions), with $20,000/$40,000 available at age 67.

• Adds tax deductions for contributions to Michigan ABLE savings accounts (for individuals with disabilities) capped at $5,000 (single) or $10,000 (joint) annually, with corresponding treatment of qualified withdrawals.

• Makes changes retroactively effective for tax years beginning after December 31, 2015.