Retirement income in Indiana
Varies
Does Indiana Tax Retirement Income?
Short answer: Yes. Private pensions and 401(k)/IRA withdrawals are taxed at Indiana's flat rate (plus county tax) with no general retirement exclusion. Indiana DOR still publishes $16,000.
Government pensions: Federal civil service annuitants 62+ (or surviving spouses) may deduct up to $16,000, reduced by Social Security and railroad retirement benefits received. Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Retirement income in Indiana
Varies
Individuals / Personal Taxes
Yes. Private pensions and 401(k)/IRA withdrawals are taxed at Indiana's flat rate (plus county tax) with no general retirement exclusion. Indiana DOR still publishes $16,000.
Business justification
Yes. Private pensions and 401(k)/IRA withdrawals are taxed at Indiana's flat rate (plus county tax) with no general retirement exclusion. Indiana DOR still publishes $16,000. Government pensions: Federal civil service annuitants 62+ (or surviving spouses) may deduct up to $16,000, reduced by Social Security and railroad retirement benefits received. Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
Category
- Personal Tax Deductions