Updated October 19, 2026. Quick answer: On the Arkansas AR1000F, line 17 covers military retirement benefits and lines 18A and 18B cover employer pensions and traditional IRA distributions, with the exempt-income list in the booklet explaining the amount that is exempt. Line 16 is where lump-sum distributions and early withdrawals are reported. The booklet’s own wording is quoted below, line by line.
What this form does
The AR1000F is the Arkansas full-year resident return, and its booklet carries the instructions for every line. For retirees the booklet has an exempt-income list and three line instructions that matter: line 16, line 17 and lines 18A and 18B. The booklet opens its military note with the heading “Military Retirement Exemption (Act 141 of 2017)” and says “retirement benefits received by a member of the uniformed services as defined in this Act are exempted from income tax”.
For how Arkansas treats retirees overall, see Arkansas retirement taxes and whether Arkansas taxes pensions. Military retirement has its own page at Arkansas treatment of military retirement.
Who it applies to
The booklet states the plan-type and age conditions in the line 18B instructions: “You might be eligible for the $6,000 exemption for retirement or disability benefits provided the distribution was from public or private employment-related retirement systems, plans, or programs.” “(The recipient does not have to be retired.)”
For a traditional IRA: “If you received a traditional IRA distribution after reaching the age of fifty-nine and one-half (59 1/2), the first $6,000 is exempt from tax.” “Premature distributions made on account of the participant’s death or disability also qualify for the exemption.”
The same passage names what does not qualify: “All other premature distributions or early withdrawals including, but not limited to, those taken for medical expenses, higher education expenses, or a first-time home purchase do not qualify for the exemption.”
Income from 401(k), 403(b) and similar plans is reported on Form 1040 lines 5a and 5b, with IRA distributions on Form 1040 lines 4a and 4b; Arkansas treatment of 401(k) and IRA withdrawals and Arkansas treatment of 403(b) and 457(b) withdrawals give the state view.
The lines, one by one
| Line | What the form says |
|---|---|
| Line 16 | “Use this line to report taxable lump-sum distributions, annuities, and traditional IRA distributions.” |
| Line 17 | “Retirement benefits received by a member of the uniformed services are exempt from income tax.” “enter gross amount in the applicable boxes provided for primary and spouse, regardless of filing status” |
| Line 18A | “If you had income from an employment-related pension plan or a qualified traditional IRA distribution, enter the gross amount(s) from box 1 of your 1099-R(s) in the space provided.” “Enter the federal taxable amount from box 2a of your 1099-R(s) in the space provided.” |
| Line 18A, the balance | “You are entitled to a $6,000 exemption from the taxable amount; the balance is taxable to Arkansas.” “Enter the balance on line 18A, column A.” |
| Line 18B, spouse | “If filing status 2, Married Filing Joint, spouse must enter the taxable amount on line 18B, column A.” |
| Line 18B, separate returns | “If filing status 4, Married Filing Separately on the Same Return, spouse must enter the taxable amount on line 18B, column B.” |
| Line 7A | “Any taxpayer age 65 or over not claiming a retirement income exemption on line 18 is eligible for an additional $29 (per taxpayer) tax credit.” |
| Exempt income, item 1 | “Military Pension received as a member of the uniformed services.” |
| Exempt income, item 12 | “If you received income from an employer-sponsored retirement plan, including disability retirement, that is not exempt under IRC §104, the first $6,000 is exempt from tax.” |
| Exempt income, item 13 | “If you received a traditional IRA distribution after reaching age fifty-nine and one-half (59 1/2), the first $6,000 is exempt from tax.” |
The exempt income items are the booklet’s list headed “EXEMPT FROM INCOME TAX”, which also says “List exempt income on AR4, Part III.”. The 1099-R boxes explained guide helps match box 1 and box 2a to the amounts the line 18A instruction asks for.
The figures the form prints
The $6,000 figure appears in running sentences of the booklet rather than a table. The exempt income list says “the first $6,000 is exempt from tax.” For the military overlap the booklet says “Retirees cannot claim the $6,000 exemption for traditional or employer sponsored distributions if their military retirement exemption exceeds $6,000.” “If the military retirement exemption is less than $6,000, the remaining amount of the exemption may be taken for traditional or employer sponsored distributions.”
The line 7A credit shown in the table is stated in its own running sentence and is limited to someone “not claiming a retirement income exemption on line 18”.
Where the result goes next
Line 18A tells the filer where the balance goes: “Enter the balance on line 18A, column A.” Line 18B says where the spouse’s amount goes, in column A for filing status 2 and column B for filing status 4. Line 16 also points to another line: “Also, enter ten percent (10%) of the tax from the federal Form 5329, Part 1 and Part II, on line 32.”
Line 17 asks you to attach the 1099-R: “Attach 1099-R(s).” The booklet says the same on lines 16, 18A and 18B.
A worked example
Illustration, not a state example. The booklet says the remaining part of the $6,000 may be used when the military exemption is smaller. Suppose a retiree’s military retirement exemption is $4,000 (invented, for the computation). The remaining amount is $6,000 minus $4,000 (invented, for the computation), or $2,000 (computed). This simply restates the booklet’s sentence with an invented number and does not replace the line 18A and 18B instructions.
Edition and line numbers
This page reads the 2025 Arkansas Individual Income Tax Forms and Instructions (AR1000F) for tax year 2025, the current files the Arkansas Department of Finance and Administration served on 2026-10-19. Check the edition printed on your own form and use that edition’s line numbers.
Common mistakes
- Claiming both the military exemption and the full $6,000 for an IRA. The line 17 instruction says “Retirees cannot claim both the military retirement exemption and the $6,000 exemption for traditional IRA distributions”.
- Treating an early IRA withdrawal as exempt. The booklet says “do not qualify for the exemption” for premature distributions other than those on account of death or disability.
- Claiming the extra age 65 credit and a retirement exemption together. The line 7A instruction says the credit is for someone “not claiming a retirement income exemption on line 18”.
Related: Arkansas retirement taxes, whether Arkansas taxes pensions, Arkansas treatment of 401(k) and IRA withdrawals, Arkansas treatment of military retirement, and Form 1040 lines 4a and 4b.
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.
Talk to an advisor about retirement income taxes
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.
Explore advisor help with retirement tax planning
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 Arkansas Individual Income Tax Forms and Instructions (AR1000F), Arkansas Department of Finance and Administration: www.dfa.arkansas.gov
- Related official page (not quoted): Arkansas Subject 206 pensions and annuities exemption guidance, Arkansas Department of Finance and Administration: www.dfa.arkansas.gov
Read from the state revenue documents linked above on October 19, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the state revenue department is the right place to confirm anything consequential.