Alabama retirement exclusion

#4 02-16-2004, 07:49 PM

HW "Skip" Weldon wrote:
- quote -

> Harlan Lunsford <lunstax[at]bellsouth.net> wrote:

> > Attributes of such a plan are that the payments stay the
> > same, month after month after month, never changing.
> > > On the exclusions you mention above, those
> > teacher,polie,fire pensions MUST be from Alabama sourced
> > pensions. Thus a person retired from the Georgia teachers'
> > retirement system will be taxed unless it is a defined
> > benefit plan.

> Many state plans (including federal FERS/CSRS) have COLAs in
> their DB pensions. Would that COLA (which slightly changes
> the amount yearly) come under the "must never change" rule
> above?

Okay then, if those plans are defined under 414j, then an
exception to the rule. So I shall amend my statement by
saying "Usual attributes...." alabama however, specifically
exempts such and doesn't relate them to 414j plans.

Cheer$,
Harlan Lunsford

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#3 02-15-2004, 04:03 AM

Harlan Lunsford <lunstax[at]bellsouth.net> wrote:

- quote -

> Attributes of such a plan are that the payments stay the
> same, month after month after month, never changing.
> On the exclusions you mention above, those
> teacher,polie,fire pensions MUST be from Alabama sourced
> pensions. Thus a person retired from the Georgia teachers'
> retirement system will be taxed unless it is a defined
> benefit plan.

Many state plans (including federal FERS/CSRS) have COLAs in
their DB pensions. Would that COLA (which slightly changes
the amount yearly) come under the "must never change" rule
above?

-HW "Skip" Weldon
Columbia, SC

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#2 02-13-2004, 04:19 AM

Harlan Lunsford <lunstax[at]bellsouth.net> wrote:

- quote -

> Hope this helps.

Yes it does. Thanks to all who replied.

Regards,
Vic Dura

--
To reply to me directly, remove the XXX characters
from my email address.

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#1 02-12-2004, 08:29 AM

Vic Dura wrote:

- quote -

> Does any Alabama preparer know if AL allows the exclusion of
> retirement payments from Alcoa? Someone swears that his tax
> preparer says the payments are exclude-able. AL allows
> exclusion of may retirement sources, e.g., TVA pension,
> teacher, police & fire fighter pensions, etc but I can't
> find anything that implies that pensions from a private
> industrial concern like Alcoa are exclude-able.

Alabama allows exclusion for all defined benifit plan
payments. These are those under 414j of the code.

Last time I looked the Alabama dept of revenue web site had
a pdf doc listing all the plans that it knew of.

Attributes of such a plan are that the payments stay the
same, month after month after month, never changing.

On the exclusions you mention above, those
teacher,polie,fire pensions MUST be from Alabama sourced
pensions. Thus a person retired from the Georgia teachers'
retirement system will be taxed unless it is a defined
benefit plan.

Hope this helps.

cheer$,
Harlan Lunsford, EA n LA

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02-12-2004, 07:51 AM

Vic Dura wrote:

- quote -

> Does any Alabama preparer know if AL allows the exclusion of
> retirement payments from Alcoa? Someone swears that his tax
> preparer says the payments are exclude-able. AL allows
> exclusion of may retirement sources, e.g., TVA pension,
> teacher, police & fire fighter pensions, etc but I can't
> find anything that implies that pensions from a private
> industrial concern like Alcoa are exclude-able.

If the payment has as its source the Alcoa defined benefit
plan, (this is the traditional non-contributory pension
plan) it is tax-free in AL.

--
Alan
http://taxtopics.net

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#-1 02-11-2004, 12:22 PM

Does any Alabama preparer know if AL allows the exclusion of
retirement payments from Alcoa? Someone swears that his tax
preparer says the payments are exclude-able. AL allows
exclusion of may retirement sources, e.g., TVA pension,
teacher, police & fire fighter pensions, etc but I can't
find anything that implies that pensions from a private
industrial concern like Alcoa are exclude-able.

--
To reply to me directly, remove the XXX characters from my
email address.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

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