Assembly Bill A9527

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9527
 
                           I N  A S S E M B L Y
 
                             January 14, 2026
                                ___________
 
 Introduced  by  M. of A. BARCLAY, McDONOUGH, FRIEND, DiPIETRO, BRABENEC,
   SMITH, MIKULIN, WALSH, MILLER, MANKTELOW, GALLAHAN,  SIMPSON,  FITZPA-
   TRICK, LEMONDES, DeSTEFANO, HAWLEY, TAGUE, ANGELINO -- Multi-Sponsored
   by  --  M. of A.   DURSO -- 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] THEIR 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
 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
 article.  Where [a husband and wife] SPOUSES file a joint state personal
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14335-01-6
 A. 9527                             2

 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.