Illinois taxation of retirement accounts
Terry, Have you heard anything about Illinois beginning to tax retirement account withdrawals? Is there any pending legislation pertaining to it?
Terry Says
My guess is that’s next on the agenda — because Illinois desperately needs to find money to pay its pension promises. It was an “offer” made by Chicago mayor Lori Lightfoot at the start of her term — to support that kind of tax on retirement withdrawals (which are currently free from state income tax) if the governor would give more money to the city schools.
I haven’t seen another such proposal — and that one died away. But it’s a good bet that’s on the horizon. Just one more reason that Illinois has nearly the largest number of people leaving the state!
