NY State Senate Bill 2009-S1397

Senate Bill S1397

2009-2010 Legislative Session

Grants a state personal income tax deduction for retirement plan distributions used to purchase long-term care insurance

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to investigations and government operations
Jan 29, 2009	referred to investigations and government operations

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2009-S1397 (ACTIVE) - Details

See Assembly Version of this Bill:: A2155
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §612, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S228
2013-2014: S1066
2015-2016: S3653
2017-2018: S9158
2019-2020: S2684
2021-2022: S20
2023-2024: S2329

2009-S1397 (ACTIVE) - Summary

Grants a state personal income tax deduction for retirement plan distributions used to purchase long-term care insurance; exempts distributions from individual retirement accounts and individual retirement annuities from state personal taxation when such distributions are used to purchase long-term health care insurance.

2009-S1397 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S1397

 TITLE OF BILL :
An act to amend the tax law, in relation to exempting distributions
from individual retirement accounts and individual retirement
annuities from state personal income taxation when such distributions
are used to purchase long-term health care insurance


 PURPOSE :
Allows tax free withdrawals from retirement IRA's and retirement
annuities for the purchase of the premiums for long-term care
insurance.

 SUMMARY OF PROVISIONS :
Section 1 amends section 612 of the tax law by adding a new subsection
3-d which exempts distributions from individual retirement accounts
and individual retirement annuities from state personal taxation when
such distributions are used to purchase long-term health care
insurance.

 JUSTIFICATION :
Planning for future long-term care needs is a goal that New York State
continues to support as a way to save Medicaid dollars and as a way
for individuals to be able to manage their own care and improve
outcomes. Different strategies and ideas need to be explored to

encourage individuals to think in advance and to plan for their
personal long-term care needs.

This legislation provides one more tool for individuals to accomplish
this goal by allowing retirement IRA's and retirement annuities to be
tapped tax free for the purpose of purchasing long-term care
insurance. Long-term care insurance can be prohibitively costly for
some individuals yet these individuals may have a retirement IRA or
retirement annuity that would afford them an opportunity to purchase a
long-term care insurance Authorizing tax free withdrawals from these
accounts to cover the costs of long-term care insurance premiums
complies with the interest and goals of the state, and opens up an
avenue of planning and affording long-term care insurance should one's
monthly income not be sufficient to afford the premiums.

 BILL HISTORY :
S.107/ A.918 of 2007/2008: Referred to Senate Investigations and
Government Operations Committee.

 FISCAL IMPLICATIONS :


 EFFECTIVE DATE :
Immediately and shall apply to taxable years commencing on the first
of January in the year in which the act shall take effect.

2009-S1397 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1397

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            January 29, 2009
                               ___________

Introduced  by  Sens.  MAZIARZ,  BONACIC, DeFRANCISCO, FLANAGAN, GOLDEN,
  O. JOHNSON, LARKIN, MORAHAN, SEWARD, VOLKER, WINNER -- read twice  and
  ordered  printed, and when printed to be committed to the Committee on
  Investigations and Government Operations

AN ACT to amend the tax law, in relation to exempting distributions from
  individual retirement accounts  and  individual  retirement  annuities
  from  state  personal income taxation when such distributions are used
  to purchase long-term health care insurance

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Subsection (c) of section 612 of the tax law is amended by
adding a new paragraph 3-d to read as follows:
  (3-D) DISTRIBUTIONS RECEIVED BY AN INDIVIDUAL, NOT OTHERWISE  EXCLUDED
PURSUANT TO PARAGRAPH THREE OR THREE-A OF THIS SUBSECTION, TO THE EXTENT
INCLUDABLE  IN  GROSS  INCOME FOR FEDERAL INCOME TAX PURPOSES, WHICH ARE
ATTRIBUTABLE TO PERSONAL SERVICES  PERFORMED  BY  SUCH  INDIVIDUAL  FROM
EMPLOYMENT,  WHICH  ARISE  (I) FROM AN EMPLOYER-EMPLOYEE RELATIONSHIP OR
(II) FROM CONTRIBUTIONS TO A RETIREMENT PLAN WHICH  ARE  DEDUCTIBLE  FOR
FEDERAL  INCOME  TAX PURPOSES, TO THE EXTENT SUCH DISTRIBUTIONS ARE USED
DURING THE TAXABLE YEAR TO PURCHASE A POLICY OF  LONG-TERM  CARE  INSUR-
ANCE,  AS  DEFINED  IN SECTION ELEVEN HUNDRED SEVENTEEN OF THE INSURANCE
LAW, FOR SUCH  INDIVIDUAL  OR  A  DEPENDENT  OF  SUCH  INDIVIDUAL.  SUCH
DISTRIBUTIONS  SHALL INCLUDE DISTRIBUTIONS FROM AN INDIVIDUAL RETIREMENT
ACCOUNT OR AN INDIVIDUAL RETIREMENT ANNUITY, AS DEFINED IN SECTION  FOUR
HUNDRED  EIGHT  OF  THE  INTERNAL  REVENUE  CODE, AND DISTRIBUTIONS FROM
SELF-EMPLOYED INDIVIDUAL AND OWNER-EMPLOYEE RETIREMENT PLANS WHICH QUAL-
IFY UNDER SECTION FOUR HUNDRED ONE OF THE INTERNAL REVENUE CODE.
  S 2. This act shall take effect immediately and shall apply to taxable
years commencing on January first in the year in which  this  act  shall
take effect and all subsequent taxable years.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01226-01-9

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