S T A T E O F N E W Y O R K
________________________________________________________________________
208
2023-2024 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 4, 2023
___________
Introduced by M. of A. MAGNARELLI, STIRPE, COOK, LUPARDO, STECK, BENE-
DETTO, JONES -- read once and referred to the Committee on Ways and
Means
AN ACT to amend the tax law, in relation to increasing the exemption for
pensions and annuities for certain persons
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] TWENTY-FIVE THOUSAND DOLLARS FOR ANY TAXABLE YEAR BEGINNING ON
OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, THIRTY THOUSAND
DOLLARS FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND TWENTY-SIX, THIRTY-FIVE THOUSAND DOLLARS FOR ANY TAXABLE YEAR
BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SEVEN, AND
FORTY thousand dollars IN EACH SUBSEQUENT YEAR, which are periodic
payments attributable to personal services performed by such individual
prior to his retirement from employment, which arise (i) from an employ-
er-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 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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00304-01-3
A. 208 2
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 term "pensions and annuities" shall not
include any lump sum distribution, as defined in subparagraph (D) 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 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.