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.