Bill Text: NY A02017 | 2025-2026 | General Assembly | Introduced

---

Bill Title: 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.

Spectrum: Partisan Bill (Republican 19-0)

Status: (Introduced) 2025-01-14 - referred to ways and means [A02017 Detail]

Download: New_York-2025-A02017-Introduced.html

---

                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.