The state says,
General Pension and Annuity Exemption The law fully exempts qualifying pension and annuity income (including 401(k), 403(b), or 457(b) plans) from income tax for taxpayers with federal AGIs below (1) $75,000 for single filers,
from the CT Office of Legislative Research
By definition, any withdrawal from one of these plans is a pension payment, whether or not you are actually retired. Thus the exclusion at the state level is proper.
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