DianeW777
Expert Alumni

State tax filing

Yes, you are correct. If you are taking distribution from your 457(b) plan for retirement it will not be taxed on the Illinois (IL) state return.

  • Once distributions begin, the distributed monies are fully taxable as ordinary income for federal tax purposes. The funds are never taxed by the State of Illinois.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"