House Bill 4132 Summary

• Eliminates the 3-tier system of limitations and restrictions on retirement and pension benefit deductions that were based on taxpayer birth year and age through December 31, 2016.

• Changes subsection (9) to apply limitations and restrictions only through December 31, 2016, effectively removing restrictions on deductions for persons born after 1952 after that date.

• Adds deduction provisions for ABLE savings accounts (Achieving a Better Life Experience) for tax years beginning after December 31, 2015, allowing up to $5,000 per single return or $10,000 per joint return annually.

• Clarifies that retirement and pension benefit deductions apply to all taxpayers without the previous age-based phased restrictions that limited deductions for certain birth year cohorts.

• Makes conforming technical corrections to the Internal Revenue Code cross-references and updates terminology throughout the section.