Pension Income Exclusion
The exclusion amount is 100 percent of taxable retirement benefits or $41,110, whichever is less. All pension and retirement income paid under a written retirement plan (qualified or unqualified) is eligible for exclusion. This includes pensions, annuities, IRA accounts, 401(k) and similar deferred compensation plans, income received from converting a regular IRA to a Roth IRA, death benefi ts, disability retirement benefits and other similar accounts or plans.
This exclusion is for each taxpayer and must be computed independently of your spouse who may be fi ling on the same return. A husband and wife must complete and claim their own exclusion, regardless of fi ling status. Joint filersùCombine the separately computed pension exclusion amounts and enter on Schedule M, Line 11, Column B.
For amount over this limit. use Schedule P. See instructions.