No Tax on distributions from 401K or TIRA – Illinois ???
I read in June 2007 Money Mag, that if you live in Illinois there is no taxes on distributions from a 401k or TIRA.
It was stated in a “pullout” talking about retirement.
I have been unable to confirm, or obtain any more info.
Is this true???
Many Thanks!
Permalink Submitted by Alan Spross on Sun, 2007-08-26 02:49
Yes. See attached paste from IL state website:
>>>>>> >>>>>>>
What retirement income may I subtract
on Form IL-1040, Line 5, and where is it
reported on my federal return?
You may subtract the amount of any federally taxed portion (not
the gross amount) included in your Form IL-1040, Line 1 that
you received from
a qualified employee benefit plan including 401(k) plans as
reported on your U.S. 1040, Line 16b, or U.S. 1040A,
Line 12b.
A qualified employee benefit plan is defined in IRC
Sections 402 through 408. If you do not know whether your
employee benefit plan is qualified, check with your employer.
railroad retirement income as reported on your U.S. 1040,
Line 16b, or U.S. 1040A, Line 12b.
an Individual Retirement Account (IRA) (including amounts
rolled over to a Roth IRA) or a self-employed retirement
(SEP) plan as reported on your U.S. 1040, Line 15b, or
U.S. 1040A, Line 11b.
>>>>>>>>>> >>>>>>>
Of course, the federal taxes are still due.