§ 21254 Pension Tax Exemption

• •Your pension or retirement money is safe from taxes.
• •Even if you die, the money you saved for retirement won’t be taxed when passed to your family.
• •This rule covers all types of retirement benefits, not just pensions.

You worked for 30 years and saved money in a retirement fund. When you retire, you start getting monthly payments.

The government can’t take taxes from those retirement payments. Even if you pass away and leave the money to your kids, they won’t have to pay inheritance tax on it.