Updated October 16, 2026. Quick answer: Missouri’s MO-1040 instructions include “Annuities, pensions, IRAs, and 401(k) plans funded by a private source” in the private pension calculation, with an exemption of up to $6,000 per person that phases out as income rises, but the documents read do not say whether an inherited IRA qualifies.
Missouri at a glance
| Item | What the documents say |
|---|---|
| How the state taxes retirement-account income | Taxed as income, with a private pension exemption that names IRAs, though the statute excludes Roth IRAs |
| Do the state’s documents address beneficiaries? | Not addressed: the documents read do not mention inherited IRAs |
| Retirement exclusion or credit | Up to $6,000 per person, reduced when Missouri AGI (less taxable Social Security) is above $25,000 single, $32,000 married filing combined or $16,000 married filing separately |
| Rate in the documents read | Top bracket in the 2025 tax table: $256 plus 4.7% of the excess over $9,191 |
| State inheritance or estate tax | Not mentioned in the documents read |
| Changed for 2026? | The documents read cover the 2025 tax year and do not say what changes for 2026 |
What the Missouri documents say
The private pension calculation on Form MO-A covers “Annuities, pensions, IRAs, and 401(k) plans funded by a private source”. The exemption is the lesser of the qualifying amount or $6,000, reduced as Missouri adjusted gross income rises above the thresholds.
RSMo 143.124 supplies the definition: “annuity, pension or retirement allowance shall be defined to include 401(k) plans” and individual retirement arrangements “but not including Roth IRAs”. The statute caps the deduction for each taxpayer on a combined return, and the form figures the exemption for each spouse.
The 2025 tax table prints its top bracket as “$256 plus 4.7% of the excess over $9,191”.
The federal 10-year rule and your Missouri tax year
IRS Publication 590-B says a beneficiary may be required to take the entire account balance by the “end of the 10th year following the year of the owner’s death”, with exceptions for certain beneficiaries. Because the balance generally has to come out within that window, the timing of each withdrawal decides which tax year it lands in. See the 10-year rule and annual RMDs, lump sum versus spreading withdrawals and inherited IRA rules.
Withholding and other state taxes
Whether a state withholds from a withdrawal is a separate rule: see state withholding on retirement withdrawals. For Missouri’s own death taxes, see inheritance tax by state.
What the documents do not say
- The documents read do not mention inherited accounts or beneficiaries of retirement accounts.
- The statute caps the deduction for each taxpayer on a combined return and the form figures the exemption for each spouse; the documents do not say whether an heir’s IRA withdrawal counts.
- They say nothing about a deduction or credit for estate tax or income in respect of a decedent.
Common mistakes
- Assuming Missouri’s rule for your own retirement income also covers an account you inherited: read whether its documents address beneficiaries, and confirm the point with a Missouri preparer.
Related: state tax on inherited IRA withdrawals, state by state, whether Missouri taxes 401(k) and IRA withdrawals, Missouri retirement taxes, inheritance tax by state, inherited IRA rules, spouse versus non-spouse beneficiary rules, and state withholding on retirement withdrawals.
Find the right next step for your situation
About how much do you have invested? Pick the range that fits; your next step appears immediately below.
Compare vetted advisors for inherited IRA decisions
For U.S. investors with $250,000 or more in investable assets. WiserAdvisor is an independent service matching you with 2 to 3 vetted advisers. Its form asks for your ZIP code and answers to a few questions; a match is not guaranteed.
Free to request, with no obligation to hire. By submitting, you consent to calls, texts and emails from WiserAdvisor and up to three advisers. Advisers pay for introductions.
Clear Money Guide may earn a referral payment for a qualifying completed form. An introduction is not a Clear Money Guide recommendation.
Opens on WiserAdvisor’s site in a new tab.
See how an advisor plans your withdrawals
Price the destination before you decide. The matching service below introduces you to advisers who pay to meet you.
Before you start, what actually happens. The form is run by Kapitalwise, our advisor-matching partner. Kapitalwise sends your details to advisers who pay for the introduction, so expect calls and texts. Clear Money Guide may earn a referral payment for a qualifying submitted form, whether or not you ever hire anyone. This is free to you and there is no obligation to hire anyone.
The Kapitalwise form opens here; you stay on this page.
What happens when you press the button
It asks about nine questions: age, investable assets, location; then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
Prefer flat-fee or hourly pricing instead? Compare ranges here.
Answer againSources
- 2025 Missouri Individual Income Tax Return Instructions (MO-1040): https://dor.mo.gov/forms/MO-1040%20Instructions_2025.pdf
- RSMo 143.124 Annuities, pensions, retirement benefits: https://revisor.mo.gov/main/OneSection.aspx?section=143.124
- IRS Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs): https://www.irs.gov/pub/irs-pdf/p590b.pdf
Sources: the primary documents linked above, read on October 16, 2026. General information, not tax advice. Your own facts decide the outcome, and a tax professional or the state agency itself is the right place to confirm anything consequential.