[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 394 Enrolled Bill (ENR)]
H.R.394
One Hundred Fourth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Wednesday,
the fourth day of January, one thousand nine hundred and ninety-five
An Act
To amend title 4 of the United States Code to limit State taxation of
certain pension income.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. LIMITATION ON STATE INCOME TAXATION OF CERTAIN PENSION
INCOME.
(a) In General.--Chapter 4 of title 4, United States Code, is
amended by adding at the end the following:
``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) 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.''.
(b) Conforming Amendment.--The table of sections for chapter 4 of
title 4, United States Code, is amended by adding at the end the
following:
``114. Limitation on State income taxation of certain pension income''.
(c) Effective Date.--The amendments made by this section shall
apply to amounts received after December 31, 1995.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.