MO HB2059

Doubles the maximum state income tax deduction for private pension and retirement income from $6,000 to $12,000 per taxpayer, effective for tax years beginning on or after January 1, 2027

Increases income eligibility thresholds for the full deduction starting January 1, 2027: single/head of household filers from $25,000 to $50,000; married filing combined from $32,000 to $64,000; married filing separately from $16,000 to $32,600

Applies to privately funded retirement sources including 401(k) plans, deferred compensation plans, Keogh plans, defined pension plan annuities, and traditional IRAs (excludes Roth IRAs)

Maintains the existing dollar-for-dollar reduction in the exemption amount for taxpayers whose income exceeds the threshold for their filing status