S T A T E O F N E W Y O R K
________________________________________________________________________
7973
2023-2024 Regular Sessions
I N A S S E M B L Y
August 18, 2023
___________
Introduced by M. of A. SLATER -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to including retirement plans
in the exemption for pensions and annuities for certain persons and to
increasing such exemption
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 AND OTHER RETIREMENT PLANS 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] FORTY THOUSAND DOLLARS FOR ANY TAXABLE
YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FIVE,
SIXTY THOUSAND DOLLARS FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND TWENTY-SIX, EIGHTY THOUSAND DOLLARS FOR ANY
TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
TWENTY-SEVEN, ONE HUNDRED thousand dollars FOR ANY TAXABLE YEAR BEGIN-
NING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-EIGHT, MULTIPLIED BY
ONE PLUS THE PERCENTAGE BY WHICH THE CONSUMER PRICE INDEX FOR THE
PRECEDING CALENDAR YEAR EXCEEDS THE CONSUMER PRICE INDEX FOR THE TAXABLE
YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-EIGHT,
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 distrib-
utions received by an individual who has attained the age of fifty-nine
and one-half from an individual retirement account or an individual
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11929-02-3
A. 7973 2
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 indi-
vidual 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 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.
FOR PURPOSES OF THIS PARAGRAPH, "CONSUMER PRICE INDEX" MEANS THE AVERAGE
OF THE CONSUMER PRICE INDEX AS OF THE CLOSE OF THE TWELVE-MONTH PERIOD
ENDING ON AUGUST THIRTY-FIRST OF SUCH TAXABLE YEAR FOR ALL-URBAN CONSUM-
ERS PUBLISHED BY THE UNITED STATES DEPARTMENT OF LABOR.
§ 2. This act shall take effect immediately.