US Supreme Court Decisions On-Line | US Laws

§ 114. —  Limitation on State income taxation of certain pension income 

[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 4USC114]

                          CHAPTER 4--THE STATES
Sec. 114. Limitation on State income taxation of certain pension 
    (a) No State may impose an income tax on any retirement income of an 
individual who is not a resident or domiciliary of such State (as 
determined under the laws of such State).
    (b) For purposes of this section--
        (1) The term ``retirement income'' means any income from--
            (A) a qualified trust under section 401(a) of the Internal 
        Revenue Code of 1986 that is exempt under section 501(a) from 
            (B) a simplified employee pension as defined in section 
        408(k) of such Code;
            (C) an annuity plan described in section 403(a) of such 
            (D) an annuity contract described in section 403(b) of such 
            (E) an individual retirement plan described in section 
        7701(a)(37) of such Code;
            (F) an eligible deferred compensation plan (as defined in 
        section 457 of such Code);
            (G) a governmental plan (as defined in section 414(d) of 
        such Code);
            (H) a trust described in section 501(c)(18) of such Code; or
            (I) any plan, program, or arrangement described in section 
        3121(v)(2)(C) of such Code, if such income--
                (i) is part of a series of substantially equal periodic 
            payments (not less frequently than annually) made for--
                    (I) the life or life expectancy of the recipient (or 
                the joint lives or joint life expectancies of the 
                recipient and the designated beneficiary of the 
                recipient), or
                    (II) a period of not less than 10 years, or

                (ii) is a payment received after termination of 
            employment and under a plan, program, or arrangement (to 
            which such employment relates) maintained solely for the 
            purpose of providing retirement benefits for employees in 
            excess of the limitations imposed by 1 or more of sections 
            401(a)(17), 401(k), 401(m), 402(g), 403(b), 408(k), or 415 
            of such Code or any other limitation on contributions or 
            benefits in such Code on plans to which any of such sections 

    Such term includes any retired or retainer pay of a member or former 
    member of a uniform service computed under chapter 71 of title 10, 
    United States Code.
        (2) The term ``income tax'' has the meaning given such term by 
    section 110(c).
        (3) The term ``State'' includes any political subdivision of a 
    State, the District of Columbia, and the possessions of the United 

    (e) \1\ Nothing in this section shall be construed as having any 
effect on the application of section 514 of the Employee Retirement 
Income Security Act of 1974.
    \1\ So in original. No subsecs. (c) and (d) have been enacted.

(Added Pub. L. 104-95, Sec. 1(a), Jan. 10, 1996, 109 Stat. 979.)

                       References in Text

    The Internal Revenue Code of 1986, referred to in subsec. (b)(1), is 
classified generally to Title 26, Internal Revenue Code.
    Section 514 of the Employee Retirement Income Security Act of 1974, 
referred to in subsec. (e), is classified to section 1144 of Title 29, 

                             Effective Date

    Section 1(c) of Pub. L. 104-95 provided that: ``The amendments made 
by this section [enacting this section] shall apply to amounts received 
after December 31, 1995.''