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Are payments from the pension rollover IRA nontaxable in Alabama?

In Alabama income from a defined benefit plan are nontaxable. I received a lump sum distribution from my defined benefit plan and rolled it over to an IRA. Are payments from the pension rollover IRA nontaxable?

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Are payments from the pension rollover IRA nontaxable in Alabama?

No - As long as the entire distribution was rolled over, the distribution is not taxable per the AL-40 instructions


Regulation 810-3-25-.05(4) — Distributions from a trust that are not included in gross income of the individual for federal purposes due to the “rollover provisions” of Internal Revenue Code Sections 402, 403, 408, and 409 are excluded from Alabama gross income of the individual.




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Level 5

Are payments from the pension rollover IRA nontaxable in Alabama?

No - As long as the entire distribution was rolled over, the distribution is not taxable per the AL-40 instructions


Regulation 810-3-25-.05(4) — Distributions from a trust that are not included in gross income of the individual for federal purposes due to the “rollover provisions” of Internal Revenue Code Sections 402, 403, 408, and 409 are excluded from Alabama gross income of the individual.




**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post