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New Member
posted Mar 15, 2025 5:06:36 AM

Do I need to be retired to use the Maine pension deduction?

I know there is a non military State of Maine deduction of $45,864 for withdrawal of a pension, but do you need to be retired ? Can you still be working and take a withdrawal from a 401k and use the State of Maine deduction?

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1 Replies
Expert Alumni
Mar 17, 2025 9:24:10 AM

It would appear you do not need to be retired to take the ME non-military pension deduction. The only mention of an age restriction is here (extracted below) in the ME form 1S instructions.  

 

"... except that pick-up contributions received from the Maine Public Employees Retirement System (“MainePERS”) allowed to be deducted on Form 1040ME, Schedule 1S, line 7 and pension income from 457(b) plans received prior to age 55 that is not part of a series of equal periodic payments made over the life of the recipient and the recipient’s designated beneficiary, if applicable, may not be included in the deductible pension amount."