Retirement income in Kentucky
Varies
Does Kentucky Tax Retirement Income?
Short answer: Partly. Each taxpayer may exclude up to $31,110 of pension, annuity, and 401(k)/IRA income.
Government pensions: Federal, Kentucky state, and Kentucky local government pension income attributable to service before January 1, 1998 is fully exempt. Post-1997 service falls under the $31,110 exclusion. 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 Kentucky
Varies
Individuals / Personal Taxes
Partly. Each taxpayer may exclude up to $31,110 of pension, annuity, and 401(k)/IRA income.
Business justification
Partly. Each taxpayer may exclude up to $31,110 of pension, annuity, and 401(k)/IRA income. Government pensions: Federal, Kentucky state, and Kentucky local government pension income attributable to service before January 1, 1998 is fully exempt. Post-1997 service falls under the $31,110 exclusion. 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