Bill Text: NY S06573 | 2013-2014 | General Assembly | Introduced

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Bill Title: Relates to increasing a pension exemption.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2014-02-07 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S06573 Detail]

Download: New_York-2013-S06573-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         6573
                                   I N  S E N A T E
                                   February 7, 2014
                                      ___________
       Introduced  by  Sen. RITCHIE -- read twice and ordered printed, and when
         printed to be committed to the Committee on Investigations and Govern-
         ment Operations
       AN ACT to amend the  tax  law,  in  relation  to  increasing  a  pension
         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 chapter 760 of the laws of 1992, is amended to read
    3  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]  SEVENTY-FIVE  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  term  "pensions  and  annuities"  shall not
   22  include any lump sum distribution, as defined  in  subparagraph  (A)  of
   23  paragraph  four  of  subsection  (e)  of section four hundred two of the
   24  internal revenue code and taxed under section six hundred three of  this
   25  article. Where a husband and wife file a joint state personal income tax
   26  return,  the  modification  provided  for  in  this  paragraph  shall be
   27  computed as if they were  filing  separate  state  personal  income  tax
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD13952-01-4
       S. 6573                             2
    1  returns.  Where a payment would otherwise come within the meaning of the
    2  term "pensions and annuities" as set forth  in  this  paragraph,  except
    3  that  such  individual is deceased, such payment shall, nevertheless, be
    4  treated  as  a pension or annuity for purposes of this paragraph if such
    5  payment is received by such individual's beneficiary.
    6    S 2. This act shall take effect on the first of January next  succeed-
    7  ing the date on which it shall have become a law.