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March 8, 2025
Question

Mississippi pension plan tax liability

  • March 8, 2025
  • 1 reply
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I inherited a retirement plan distribution from a deceased family member who was a resident of Mississippi and their pension plan was in Mississippi. I am a resident of Mississippi as well and am the beneficiary of this retirement plan distribution. Do I have to pay Mississippi state income tax on it?

    1 reply

    March 18, 2025

    It depends.  Generally, retirement income, pensions and annuities are not subject to Mississippi Income tax if the recipient has met the retirement plan requirements. Early distributions are not considered retirement income and may be subject to tax. 

     

    If you are not retirement age, then your inherited retirement plan distribution is taxable for Mississippi (MS).

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