Updated October 16, 2026. Quick answer: West Virginia’s instructions name no 403(b) or 457(b) plan; their retirement modification is capped at a combined $2,000 for the state Teachers’ and Public Employees’ Retirement Systems and federal retirement income, so the documents do not show a 403(b) or 457(b) distribution qualifying.
State retirement-income forms, line by line: West Virginia Schedule M.
West Virginia at a glance
| Item | What the documents say |
|---|---|
| How the state treats 403(b) and 457(b) withdrawals | The documents read do not say whether these plans qualify |
| Do the state’s documents name these plans? | The documents read name neither 403(b) nor 457(b) plans |
| Retirement exclusion or credit | Other retirement modification of up to $2,000 combined for named systems, and a separate modification of up to $8,000 at 65 or older or disabled |
| Public-employee pension rule | Yes, the Teachers’ and Public Employees’ Retirement Systems, and police, firefighter and sheriff retirement, have their own rules |
| Rate in the documents read | 2026: top rate 4.58% on taxable income over $60,000 |
| Changed for 2026? | SB 392 cut income tax rates 5% across the board, retroactive to January 1, 2026 |
What the West Virginia documents say
The IT-140 instructions limit the modification: “Combined amounts of 33a and 33b must not exceed $2,000”. Retirement pay of West Virginia police, deputy sheriffs, firefighters, federal law enforcement and the military is not taxed, and a separate modification of up to $8,000 applies at 65 or older or if disabled.
The State Tax Department’s 2026 rate page announces a “5% income tax cut for all West Virginians” and prints the top bracket as “$1,950.50 plus 4.58% of excess over $60,000”.
Withholding and federal tax
Whether a state withholds is a separate rule: see state withholding on retirement withdrawals. Federal rules: 403(b) withdrawal rules and 457(b) withdrawal rules. The IRS says pension and annuity payments from a qualified employer plan have “all or some portion of the amounts you receive may be taxable”.
What the documents do not say
- The documents read never name 403(b) or 457(b) plans.
- Whether a 403(b) or 457(b) distribution can use the $8,000 modification depends on the filer’s age or disability, which the instructions state separately.
- The instructions are for tax year 2025.
Common mistakes
- Assuming West Virginia’s rule for a 401(k) or IRA also covers a 403(b) or 457(b): read whether its documents name the plan.
Related: whether West Virginia taxes 401(k) and IRA withdrawals, West Virginia retirement taxes, whether West Virginia taxes pensions, 403(b) withdrawal rules, 457(b) withdrawal rules, and state withholding on retirement withdrawals.
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Answer againSources
- 2025 West Virginia Personal Income Tax Information and Instructions (IT-140): https://tax.wv.gov/Documents/PIT/2025/it140.PersonalIncomeTaxFormsAndInstructions.2025.pdf
- 2026 Income Tax Rate Cut: https://tax.wv.gov/Individuals/Pages/PersonalIncomeTaxReductionBill.aspx
- IRS Tax Topic 410, Pensions and annuities: https://www.irs.gov/taxtopics/tc410
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.