A 2017: Includes retirement plans in the exemption for pensions and annuities for certain persons; increases such exemption to one hundred thousand dollars as adjusted by the consumer price index annually.

  
  STATE OF NEW YORK ________________________________________________________________________ 2017 2025-2026 Regular Sessions  IN ASSEMBLY January 14, 2025 ___________ Introduced by M. of A. SLATER, GALLAHAN, DURSO, E. BROWN, GANDOLFO, WALSH, DeSTEFANO, GRAY, MAHER, ANGELINO, BRABENEC, BLANKENBUSH, TAGUE, BENDETT, BEEPHAN, HAWLEY, K. BROWN, JENSEN, MILLER -- 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: 1 Section 1. Paragraph 3-a of subsection (c) of section 612 of the tax 2 law, as amended by section 3 of part I of chapter 59 of the laws of 3 2015, is amended to read as follows: 4 (3-a) Pensions [and], annuities and other retirement plans received by 5 an individual who has attained the age of fifty-nine and one-half, not 6 otherwise excluded pursuant to paragraph three of this subsection, to 7 the extent includible in gross income for federal income tax purposes, 8 but not in excess of [twenty] forty thousand dollars for any taxable 9 year beginning on or after January first, two thousand twenty-seven, 10 sixty thousand dollars for any taxable year beginning on or after 11 January first, two thousand twenty-eight, eighty thousand dollars for 12 any taxable year beginning on or after January first, two thou- 13 sand twenty-nine, one hundred thousand dollars for any taxable year 14 beginning on or after January first, two thousand thirty, multiplied by 15 one plus the percentage by which the consumer price index for the 16 preceding calendar year exceeds the consumer price index for the taxable 17 year beginning on or after January first, two thousand thirty, which are 18 periodic payments attributable to personal services performed by such 19 individual prior to [his] their retirement from employment, which arise 20 (i) from an employer-employee relationship or (ii) from contributions to 21 a retirement plan which are deductible for federal income tax purposes. 22 However, the term "pensions and annuities" shall also include distrib- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05032-01-5 
 A. 2017 2 1 utions received by an individual who has attained the age of fifty-nine 2 and one-half from an individual retirement account or an individual 3 retirement annuity, as defined in section four hundred eight of the 4 internal revenue code, and distributions received by an individual who 5 has attained the age of fifty-nine and one-half from self-employed indi- 6 vidual and owner-employee retirement plans which qualify under section 7 four hundred one of the internal revenue code, whether or not the 8 payments are periodic in nature. Nevertheless, the term "pensions and 9 annuities" shall not include any lump sum distribution, as defined in 10 subparagraph (D) of paragraph four of subsection (e) of section four 11 hundred two of the internal revenue code and taxed under section six 12 hundred three of this article. Where [a husband and wife] spouses file a 13 joint state personal income tax return, the modification provided for in 14 this paragraph shall be computed as if they were filing separate state 15 personal income tax returns. Where a payment would otherwise come within 16 the meaning of the term "pensions and annuities" as set forth in this 17 paragraph, except that such individual is deceased, such payment shall, 18 nevertheless, be treated as a pension or annuity for purposes of this 19 paragraph if such payment is received by such individual's beneficiary. 20 For purposes of this paragraph, "consumer price index" means the average 21 of the consumer price index as of the close of the twelve-month period 22 ending on August thirty-first of such taxable year for all-urban consum- 23 ers published by the United States department of labor. 24 § 2. This act shall take effect immediately.