Modifies provisions relating to income tax on retirement income from private and public sources

HB 2205 modifies Missouri's tax treatment of retirement income, affecting residents receiving pensions or retirement benefits. It establishes specific deduction limits for retirement income based on the benefit source (public vs. private), filing status, and income level, with varying annual caps (e.g., up to $6,000 for public benefits before 2027). For tax years beginning on or after January 1, 2027, the bill eliminates income-based limits, allowing full deduction of all private retirement income regardless of filing status or income. The changes apply to retirement benefits from government sources (like state pensions) or private plans (like 401(k)s), excluding Roth IRAs. This bill adjusts how retirement income is subtracted from taxable income under Missouri law.