Assembly Bill A259A

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  259--A
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by  M.  of  A.  MAGNARELLI,  STIRPE, COOK, STECK, BENEDETTO,
   JONES, EACHUS -- read once and referred to the Committee on  Ways  and
   Means  --  committee  discharged,  bill  amended, ordered reprinted as
   amended and recommitted to said committee

 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-SEVEN, THIRTY THOUSAND
 DOLLARS FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER  JANUARY  FIRST,  TWO
 THOUSAND TWENTY-EIGHT, THIRTY-FIVE THOUSAND DOLLARS FOR ANY TAXABLE YEAR
 BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-NINE, 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 employer-em-
 ployee 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00834-03-5
 A. 259--A                           2
 
 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  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] SPOUSES 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.