Tax free pension plans
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Tax free pension plans

Did you know? Defined benefit retirement plans are exempt from Alabama taxes. If you or someone you know is receiving retirement payments from a Defined Benefit plan, you do not have to pay State of Alabama taxes on it. Click here to see the partial list of tax free plans. If you see your pension plan on the list, tell your tax preparer that your benefits are exempt from Alabama state income taxes. If you live outside Alabama, check with your tax advisor or State Tax Authority to find out if your state also exempts these payments.

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