§ 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]
TITLE 4--FLAG AND SEAL, SEAT OF GOVERNMENT, AND THE STATES
CHAPTER 4--THE STATES
Sec. 114. Limitation on State income taxation of certain pension
income
(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
taxation;
(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
Code;
(D) an annuity contract described in section 403(b) of such
Code;
(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
apply.
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
States.
(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.
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\1\ So in original. No subsecs. (c) and (d) have been enacted.
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(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,
Labor.
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.''