Bill Text: NY S07333 | 2013-2014 | General Assembly | Introduced
Bill Title: Grants a personal income tax deduction to taxpayers with a terminal illness who withdraw up to $20,000 from their 401(k) account on a hardship basis.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-05-13 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S07333 Detail]
Download: New_York-2013-S07333-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 7333 I N S E N A T E May 13, 2014 ___________ Introduced by Sen. YOUNG -- 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 establishing a personal income tax deduction for certain withdrawals from a 401(k) plan by a taxpayer suffering from a terminal illness THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Subsection (c) of section 612 of the tax law is amended by 2 adding a new paragraph 42 to read as follows: 3 (42) HARDSHIP DISTRIBUTIONS FROM A RETIREMENT ACCOUNT ESTABLISHED 4 PURSUANT TO SECTION 401(K) OF THE INTERNAL REVENUE CODE TO THE EXTENT 5 INCLUDABLE IN FEDERAL ADJUSTED GROSS INCOME, PROVIDED, HOWEVER, THAT THE 6 EXCLUSION PROVIDED FOR IN THIS PARAGRAPH SHALL NOT EXCEED TWENTY THOU- 7 SAND DOLLARS; PROVIDED, FURTHER, THAT SUCH EXCLUSION SHALL ONLY BE 8 AVAILABLE BY REASON OF A MEDICALLY DETERMINABLE PHYSICAL OR MENTAL 9 IMPAIRMENT OF AN INDIVIDUAL TAXPAYER WHICH CAN BE EXPECTED TO RESULT IN 10 DEATH WITHIN A PERIOD OF NOT MORE THAN TWELVE MONTHS. 11 S 2. This act shall take effect immediately and shall apply to the tax 12 year in which it takes effect and all subsequent tax years. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14948-03-4