HB 5892 Summary

• Modifies Michigan income tax deductions for retirement and pension benefits, specifically changing restrictions for individuals born after 1952 who receive benefits from governmental employment not covered by federal Social Security.

• Adds new deductions for ABLE savings accounts (tax years beginning after December 31, 2015), allowing up to $5,000 for single returns or $10,000 for joint returns annually, plus interest earned on contributions.

• Expands deduction eligibility for certain governmental retirees: individuals born after 1952 who are ages 62-66 can deduct retirement benefits up to $15,000 (single) or $30,000 (joint); starting January 1, 2017, those under age 67 can deduct up to $20,000 (single) or $40,000 (joint) if both spouses receive such benefits.

• Clarifies that the term "retirement or pension benefits" applies throughout Section 30 and modifies provisions for Holocaust victim asset recovery and other income adjustments.