S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6213
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 4, 2019
                                ___________
 
 Introduced  by  M.  of  A.  MAGNARELLI, GOTTFRIED, STIRPE, COOK, MOSLEY,
   LUPARDO, STECK, BENEDETTO, PICHARDO, ARROYO, SCHIMMINGER, ENGLEBRIGHT,
   JONES,  SIMON,  ORTIZ,  CARROLL,  BARNWELL,  CAHILL,  ABBATE,  RIVERA,
   L. ROSENTHAL,  GUNTHER  --  Multi-Sponsored by -- M. of A. BRAUNSTEIN,
   HYNDMAN, THIELE, WRIGHT -- read once and referred to the Committee  on
   Ways and Means
 
 AN ACT to amend the tax law, in relation to increasing the exemption for
   pensions and annuities for certain persons
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 3-a of subsection (c) of section 612 of  the  tax
 law,  as  amended  by  section  3 of part I of chapter 59 of the laws of
 2015, is amended to read as follows:
   (3-a) Pensions  and  annuities  received  by  an  individual  who  has
 attained  the  age  of  fifty-nine  and one-half, not otherwise excluded
 pursuant to paragraph three of this subsection, to the extent includible
 in gross income for federal income tax purposes, but not  in  excess  of
 [twenty]  TWENTY-FIVE THOUSAND DOLLARS FOR ANY TAXABLE YEAR BEGINNING ON
 OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE, THIRTY THOUSAND DOLLARS
 FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST,  TWO  THOUSAND
 TWENTY-TWO,  THIRTY-FIVE THOUSAND DOLLARS FOR ANY TAXABLE YEAR BEGINNING
 ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-THREE, AND FORTY thousand
 dollars IN EACH SUBSEQUENT YEAR, which are periodic  payments  attribut-
 able  to  personal  services  performed  by such individual prior to his
 retirement 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. However, the term  "pensions
 and  annuities" shall also include distributions received by an individ-
 ual who has attained the age of fifty-nine and one-half from an individ-
 ual retirement account or an individual retirement annuity,  as  defined
 in section four hundred eight of the internal revenue code, and distrib-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01881-01-9

 A. 6213                             2
 
 utions  received by an individual who has attained the age of fifty-nine
 and one-half from self-employed individual and owner-employee retirement
 plans which qualify under section  four  hundred  one  of  the  internal
 revenue code, whether or not the payments are periodic in nature. Never-
 theless,  the  term  "pensions and annuities" shall not include any lump
 sum distribution, as defined in subparagraph (D) of  paragraph  four  of
 subsection  (e) of section four hundred two of the internal revenue code
 and taxed under section six hundred  three  of  this  article.  Where  a
 husband  and  wife  file  a  joint state personal income tax return, the
 modification provided for in this paragraph shall be computed as if they
 were filing separate state personal income tax returns. Where a  payment
 would otherwise come within the meaning of the term "pensions and annui-
 ties"  as  set  forth  in this paragraph, except that such individual is
 deceased, such payment shall, nevertheless, be treated as a  pension  or
 annuity  for  purposes  of this paragraph if such payment is received by
 such individual's beneficiary.
   § 2. This act shall take effect immediately.