Tax law should treat pensions and 401k accounts the same
In 2017 the state legislature enacted legislation to give tax breaks to people receiving pension and annuity income — under $75,000 for singles and $100,000 for married couples. This began phasing in on January 1, 2019 and will eliminate income tax on those amounts in 2025.
Where did this leave all of the hard-working citizens of Connecticut who don’t have a pension plan and are forced to save for retirement on their own in a 401K or IRA? Forgotten once again, so that their taxes can subsidize the gold-plated benefits of state employees (the main recipient of pensions in the state).
Thankfully, someone in the legislature has noticed and taken action. Rep. Devin Carney of the 23rd district has introduced Proposed
Bill No. 5060, which will amend the tax law to give equal treatment to retirees deriving their income from IRAs and 401Ks. Equal treatment under the law is guaranteed by the 14th Amendment and as a principal every American should support.
I call on our legislature to enact this bill as soon as possible and make retirement fair for all Connecticut residents.
James Miller lives in Lyme.
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