Senate Bill 81 Summary

• Amends Oklahoma income tax law regarding retirement benefits and certain income exemptions for tax years 2024 and beyond.

• Expands full exemption of retirement benefits from state taxable income for tax year 2024 and subsequent years, removing previous dollar amount limitations ($5,500-$10,000 caps for 2004-2023).

• Eliminates restrictions on lump-sum distributions from employer deferred compensation plans by allowing amounts withdrawn in tax year 2024 and later to be exempt from taxable income when withdrawn in the same manner as individual retirement account withdrawals.

• Effective date: November 1, 2023.