topic state of CT pension exclusion in State tax filing

state of CT pension exclusion

MLafe — Thu, 23 Jan 2025 16:41:19 GMT

I am under the age of retirement and under the threshold of $75,000 for the CT state pension exclusion. This is usually a deduction for CT residents. MY 1099-R has a distribution code of 1 ( early withdrawal). The software is still deducting the pension money I took out of the account. Is this correct?

I would think I would have to pay taxes to the state considering I am not of retirement age but I do not see any stipulations regarding age.

any suggestions?

Re: state of CT pension exclusion

BillM223 — Thu, 23 Jan 2025 18:00:05 GMT

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.