S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2155

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 15, 2009
                               ___________

Introduced  by  M.  of A. ENGLEBRIGHT, P. RIVERA, HEASTIE, KOON, GREENE,
  CHRISTENSEN, ABBATE, CAHILL, MAGNARELLI -- Multi-Sponsored by -- M. of
  A. ARROYO, BOYLAND, COLTON, COOK, DESTITO,  JACOBS,  MARKEY,  McENENY,
  PEOPLES,  PERRY,  PHEFFER, J. RIVERA, SCHIMMINGER, SCHROEDER, SWEENEY,
  WEISENBERG -- read once and referred to  the  Committee  on  Ways  and
  Means

AN ACT to amend the tax law, in relation to exempting distributions from
  individual  retirement  accounts  and  individual retirement annuities
  from state personal income taxation when such distributions  are  used
  to purchase long-term health care insurance

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subsection (c) of section 612 of the tax law is amended  by
adding a new paragraph 3-d to read as follows:
  (3-D)  DISTRIBUTIONS RECEIVED BY AN INDIVIDUAL, NOT OTHERWISE EXCLUDED
PURSUANT TO PARAGRAPH THREE OR THREE-A OF THIS SUBSECTION, TO THE EXTENT
INCLUDABLE IN GROSS INCOME FOR FEDERAL INCOME TAX  PURPOSES,  WHICH  ARE
ATTRIBUTABLE  TO  PERSONAL  SERVICES  PERFORMED  BY SUCH INDIVIDUAL FROM
EMPLOYMENT, WHICH ARISE (I) FROM AN  EMPLOYER-EMPLOYEE  RELATIONSHIP  OR
(II)  FROM  CONTRIBUTIONS  TO A RETIREMENT PLAN WHICH ARE DEDUCTIBLE FOR
FEDERAL INCOME TAX PURPOSES, TO THE EXTENT SUCH DISTRIBUTIONS  ARE  USED
DURING  THE  TAXABLE  YEAR TO PURCHASE A POLICY OF LONG-TERM CARE INSUR-
ANCE, AS DEFINED IN SECTION ELEVEN HUNDRED SEVENTEEN  OF  THE  INSURANCE
LAW,  FOR  SUCH  INDIVIDUAL  OR  A  DEPENDENT  OF  SUCH INDIVIDUAL. SUCH
DISTRIBUTIONS SHALL INCLUDE DISTRIBUTIONS FROM AN INDIVIDUAL  RETIREMENT
ACCOUNT  OR AN INDIVIDUAL RETIREMENT ANNUITY, AS DEFINED IN SECTION FOUR
HUNDRED EIGHT OF THE  INTERNAL  REVENUE  CODE,  AND  DISTRIBUTIONS  FROM
SELF-EMPLOYED INDIVIDUAL AND OWNER-EMPLOYEE RETIREMENT PLANS WHICH QUAL-
IFY UNDER SECTION FOUR HUNDRED ONE OF THE INTERNAL REVENUE CODE.
  S 2. This act shall take effect immediately and shall apply to taxable
years  commencing  on  January first in the year in which this act shall
take effect and all subsequent taxable years.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD01226-01-9