Individuals
Pension, Social Security and Retirement Income
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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