S T A T E O F N E W Y O R K
________________________________________________________________________
6509
2011-2012 Regular Sessions
I N A S S E M B L Y
March 21, 2011
___________
Introduced by M. of A. KOLB, CORWIN -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to clarifying the applicability
of certain exemptions to periodic distributions from a nonqualified
pension plan
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph 3-a of subsection (c) of section 612 of the tax
law, as amended by chapter 760 of the laws of 1992, is amended to read
as follows:
(3-a) Pensions and annuities received by an individual who has
attained the age of fifty-nine and one-half, not otherwise excluded
pursuant to paragraph three of this subsection, to the extent includible
in gross income for federal income tax purposes, but not in excess of
twenty thousand dollars, which are periodic payments attributable to
personal services performed by such individual prior to his retirement
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. However, the term "pensions and annuities"
shall also include distributions received by an individual who has
attained the age of fifty-nine and one-half from an individual retire-
ment account or an individual retirement annuity, as defined in section
four hundred eight of the internal revenue code, and distributions
received by an individual who has attained the age of fifty-nine and
one-half from self-employed individual and owner-employee retirement
plans which qualify under section four hundred one of the internal
revenue code, whether or not the payments are periodic in nature. THE
TERM "PENSIONS AND ANNUITIES" SHALL ALSO INCLUDE DISTRIBUTIONS FROM
PENSION PLANS THAT ARE NOT QUALIFIED UNDER THE INTERNAL REVENUE CODE,
BUT OTHERWISE MEET THE REQUIREMENTS OF THIS SUBSECTION, REGARDLESS OF
WHETHER SUCH DISTRIBUTIONS ARE REPORTED AS WAGES ON IRS FORM W-2. Never-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05333-01-1
A. 6509 2
theless, the term "pensions and annuities" shall not include any lump
sum distribution, as defined in subparagraph (A) of paragraph four of
subsection (e) of section four hundred two of the internal revenue code
and taxed under section six hundred three of this article. Where a
husband and wife file a joint state personal income tax return, the
modification provided for in this paragraph shall be computed as if they
were filing separate state personal income tax returns. Where a payment
would otherwise come within the meaning of the term "pensions and annui-
ties" as set forth in this paragraph, except that such individual is
deceased, such payment shall, nevertheless, be treated as a pension or
annuity for purposes of this paragraph if such payment is received by
such individual's beneficiary.
S 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law.