OK HB2968

Increases the retirement benefits exemption from Oklahoma taxable income from $10,000 to $20,000 for individuals receiving benefits from specified state retirement systems (Oklahoma Public Employees Retirement System, Teachers' Retirement System, Law Enforcement Retirement System, Firefighters Pension, Police Pension, and others)

Raises the combined total exemption cap for retirement benefits claimed under both paragraph 8 (state retirement systems) and paragraph 13 (private retirement plans like 401(k)s, IRAs, and 457 plans) from $10,000 to $20,000

Applies to tax year 2027 and all subsequent tax years, with an effective date of January 1, 2027

Amends 68 O.S. 2021, Section 2358, which governs adjustments to arrive at Oklahoma taxable income and adjusted gross income