S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4431
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 2, 2017
                                ___________
 
 Introduced by M. of A. KOLB, McDONOUGH, FINCH, FRIEND -- Multi-Sponsored
   by  --  M.  of A. BARCLAY, THIELE, WALTER -- read once and referred to
   the Committee on Ways and Means
 
 AN ACT to amend the tax law, in relation to making the first one hundred
   thousand dollars of an individuals' private pension non-taxable

   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 section 3 of part I of chapter  59  of  the  laws  of
 2015, 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] ONE HUNDRED  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-employ-
 ee 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  retirement  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. Nevertheless, the] THE term "pensions and annuities"  shall  not
 include  any lump sum distribution, as defined in subparagraph [(D)] (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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD03238-01-7

 A. 4431                             2
 
 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 annuities" 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.
   §  2.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after the first of January  of
 the year in which it shall have become a law.