Bill Text: NY A04764 | 2021-2022 | General Assembly | Introduced

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Bill Title: Relates to making the first one hundred thousand dollars of an individual's private pension non-taxable.

Spectrum: Partisan Bill (Republican 23-0)

Status: (Introduced - Dead) 2022-06-01 - held for consideration in ways and means [A04764 Detail]

Download: New_York-2021-A04764-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          4764

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                    February 8, 2021
                                       ___________

        Introduced  by M. of A. BARCLAY, J. M. GIGLIO, McDONOUGH, FRIEND, DiPIE-
          TRO, BRABENEC, SMITH, MIKULIN, ASHBY, BYRNE, WALSH, B. MILLER, LAWLER,
          MANKTELOW, GALLAHAN, SIMPSON, FITZPATRICK, LEMONDES, DeSTEFANO, HAWLEY
          -- 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:

     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  received  by  an  individual  [who  has
     5  attained  the  age  of  fifty-nine and one-half], not otherwise excluded
     6  pursuant to paragraph three of this subsection, to the extent includible
     7  in gross income for federal income tax purposes, but not  in  excess  of
     8  [twenty]  one  hundred  thousand  dollars,  which  are periodic payments
     9  attributable to personal services performed by such individual prior  to
    10  his retirement from employment, which arise (i) from an employer-employ-
    11  ee  relationship  or  (ii) from contributions to a retirement plan which
    12  are deductible for federal  income  tax  purposes.  [However,  the  term
    13  "pensions and annuities" shall also include distributions received by an
    14  individual  who  has attained the age of fifty-nine and one-half from an
    15  individual retirement account or an individual  retirement  annuity,  as
    16  defined  in section four hundred eight of the internal revenue code, and
    17  distributions received by an individual who  has  attained  the  age  of
    18  fifty-nine and one-half from self-employed individual and owner-employee
    19  retirement  plans  which  qualify  under section four hundred one of the
    20  internal revenue code, whether or  not  the  payments  are  periodic  in
    21  nature.  Nevertheless,  the] The term "pensions and annuities" shall not
    22  include any lump sum distribution, as defined in subparagraph [(D)]  (A)

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02532-01-1
        A. 4764                             2

     1  of  paragraph  four of subsection (e) of section four hundred two of the
     2  internal revenue code and taxed under section six hundred three of  this
     3  article. Where a husband and wife file a joint state personal income tax
     4  return,  the  modification  provided  for  in  this  paragraph  shall be
     5  computed as if they were  filing  separate  state  personal  income  tax
     6  returns.  Where a payment would otherwise come within the meaning of the
     7  term "pensions and annuities" as set forth  in  this  paragraph,  except
     8  that  such  individual is deceased, such payment shall, nevertheless, be
     9  treated as a pension or annuity for purposes of this paragraph  if  such
    10  payment is received by such individual's beneficiary.
    11    §  2.  This  act  shall take effect immediately and shall be deemed to
    12  have been in full force and effect on and after the first of January  of
    13  the year in which it shall have become a law.