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For example, KPERS retirement benefits are subject to Federal Income Tax, but exempt from Kansas Income Tax. YOU WILL NEED TO MAKE A SPECIFIC ENTRY on Schedule S to report these exempt benefits.
In general, a KPERS benefit is taxable for federal income tax and not for Kansas state tax.
If you receive railroad retirement benefits, you wont pay state income taxes. Kansas exempts retirement plans administered by the US Railroad Retirement Board, including railroad retirement benefits, dual vested benefits, and supplemental annuities.
When you receive income from your traditional 401(k), 403(b) or 457 salary reduction plans, youll owe income tax on those amounts. This income, which is produced by the combination of your contributions, any employer contributions and earnings on the contributions, is taxed at your regular ordinary rate.
The KPERS Trust Fund is made up of contributions and investment income. You put 6% of every paycheck into the Retirement System. And your employer contributes, too. Then we invest the money to pay you a lifetime monthly benefit in retirement.