1.26 Ark. Code R. 51-307

Current through Register Vol. 49, No. 10, October, 2024

Rule 1.26-51-307 - Retirement or Disability Benefits

The first $6,000.00 of retirement or disability benefits received by a resident of Arkansas from an in-state or out-of-state retirement plan or program will be exempt from Arkansas income tax if:

(a) the retirement plan or program is directly related to either public or private employment;

b) the Arkansas resident is the employee or former employee owner of the plan or the employee or former employee's spouse.

Plans or programs that could fall within the scope of this exemption are: pension plans; profit sharing plans; stock bonus plans; employee stock ownership plans (ESOPs); annuity plans; thrift and savings plans; cash or deferred arrangements (CODAs, also known as 401(k) plans); and simplified employee pension (SEP) plans. An individual retirement account (IRA) will fall outside the scope of this exemption unless it is established by an employer as a SEP.

1.26 Ark. Code R. 51-307