Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|
---|---|
May 13, 2014 |
referred to investigations and government operations |
Senate Bill S7333
2013-2014 Legislative Session
Sponsored By
(R, C, IP) Senate District
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
Actions
2013-S7333 (ACTIVE) - Details
- Current Committee:
- Senate Investigations And Government Operations
- Law Section:
- Tax Law
- Laws Affected:
- Amd §612, Tax L
- Versions Introduced in Other Legislative Sessions:
-
2015-2016:
S1986
2017-2018: S460
2019-2020: S865
2013-S7333 (ACTIVE) - Sponsor Memo
BILL NUMBER:S7333 TITLE OF BILL: An act to amend the tax law, in relation to establishing a personal income tax deduction for certain withdrawals from a 401(k) plan by a taxpayer suffering from a terminal illness PURPOSE OR GENERAL IDEA OF BILL: This bill grants a personal income tax deduction to taxpayers with a terminal illness who withdraw up to 20,000 from their 401(k) account on a hardship basis. SUMMARY OF SPECIFIC PROVISIONS: Section 1 adds a new paragraph 42 to subsection c of section 612 of the tax law to provide that hardship distributions from a retirement account established pursuant to section 401 (K) of the internal revenue code shall be exempt from New York state tax, to the extent includable in federal adjusted gross income, up to a maximum of $20,000. The exemption shall only be available to those who have a medically terminable condition which can be expected to result in death within a period of not more than 12 months. JUSTIFICATION: Federal law governs the granting of 401(k) hardship withdrawals. This bill will assist those who are facing a life ending crisis who have proven their hardship case for a withdraw of 401 (k) funds on a hardship basis in accordance with federal regulations applicable to such plans. It is unfair to subject terminally ill
2013-S7333 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 7333 I N S E N A T E May 13, 2014 ___________ Introduced by Sen. YOUNG -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT to amend the tax law, in relation to establishing a personal income tax deduction for certain withdrawals from a 401(k) plan by a taxpayer suffering from a terminal illness 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 42 to read as follows: (42) HARDSHIP DISTRIBUTIONS FROM A RETIREMENT ACCOUNT ESTABLISHED PURSUANT TO SECTION 401(K) OF THE INTERNAL REVENUE CODE TO THE EXTENT INCLUDABLE IN FEDERAL ADJUSTED GROSS INCOME, PROVIDED, HOWEVER, THAT THE EXCLUSION PROVIDED FOR IN THIS PARAGRAPH SHALL NOT EXCEED TWENTY THOU- SAND DOLLARS; PROVIDED, FURTHER, THAT SUCH EXCLUSION SHALL ONLY BE AVAILABLE BY REASON OF A MEDICALLY DETERMINABLE PHYSICAL OR MENTAL IMPAIRMENT OF AN INDIVIDUAL TAXPAYER WHICH CAN BE EXPECTED TO RESULT IN DEATH WITHIN A PERIOD OF NOT MORE THAN TWELVE MONTHS. S 2. This act shall take effect immediately and shall apply to the tax year in which it takes effect and all subsequent tax years. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14948-03-4
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