AN ACT relating to the taxation of retirement distributions.

This bill would raise the amount of retirement income that Kentuckians can exclude from state income taxes. Starting in 2026, the first $41,110 of retirement distributions would be tax-free at the state level, up from the current $31,110 limit. Who it may affect: Kentuckians who receive retirement distributions, such as retirees drawing from pensions, 401(k)s, or similar accounts.

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