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Pension, Social Security and Retirement Income

 
 
seniors investigating tax questions

Does Illinois tax my pension, Social Security, or retirement income?

  • llinois does not tax distributions received from:
  • qualified employee benefit plans, including 401(K) plans;
  • an Individual Retirement Account, (IRA) or a self-employed retirement plan;
  • a traditional IRA that has been converted to a Roth IRA;
  • the redemption of U.S. retirement bonds;
  • state and local government deferred compensation plans;
  • a government retirement or government disability plan, including military plans;
  • railroad retirement income;
  • retirement payments to retired partners;
  • a lump sum distribution of appreciated employer securities; and
  • the federally taxed portion of Social Security benefits.

For more information:

please see the IL-1040 Instructions and Pub-120, Retirement Income.

 

 
 
 
 
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