The University is aware of the legislation signed by Governor Parsons on July 6, 2023, and have reviewed it with the university¡¯s tax and legal advisors. The new law, which will go into effect in January of 2024, will not change how the university reports retirement benefits to retirees for tax purposes. However, we understand that the legislation may affect the amount of retirement benefit income that some taxpayers are able to exempt from their ÃÛÌÇÖ±²¥ taxable income when filing ÃÛÌÇÖ±²¥ taxes.
Office of Human Resources is occasionally asked if benefits paid from the University of ÃÛÌÇÖ±²¥ System¡¯s Retirement, Disability and Death Benefit Plan would be eligible for exemption under ÃÛÌÇÖ±²¥ State tax law. UM System, of course, does not provide tax advice to employees or retirees and, accordingly, we are unable to respond to these questions.
UM, however, can offer a ruling from the ÃÛÌÇÖ±²¥ Department of Revenue: . It contains information that cautions about reliance by taxpayers upon the interpretations contained in the letter and duration of its validity. UM System HR suggests a review of this letter by you and/or your tax advisor.
The university cannot provide tax advice to employees or retirees. We encourage you to discuss your particular tax situation and how this legislation may impact you with your tax advisor.
Reviewed 2023-09-18
