S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    208
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 4, 2023
                                ___________
 
 Introduced  by  M. of A. MAGNARELLI, STIRPE, COOK, LUPARDO, STECK, BENE-
   DETTO, JONES -- 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-FIVE,  THIRTY  THOUSAND
 DOLLARS  FOR  ANY  TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO
 THOUSAND TWENTY-SIX, THIRTY-FIVE THOUSAND DOLLARS FOR ANY  TAXABLE  YEAR
 BEGINNING  ON  OR  AFTER  JANUARY  FIRST, TWO THOUSAND TWENTY-SEVEN, AND
 FORTY thousand dollars IN  EACH  SUBSEQUENT  YEAR,  which  are  periodic
 payments  attributable to personal services performed by such individual
 prior to his retirement from employment, which arise (i) from an employ-
 er-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
 individual  who  has attained the age of fifty-nine and one-half from an
 individual retirement account or an individual  retirement  annuity,  as
 defined  in section four hundred eight of the internal revenue code, and
 distributions received by an individual who  has  attained  the  age  of
 fifty-nine and one-half from self-employed individual and owner-employee
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00304-01-3
 A. 208                              2
 
 retirement  plans  which  qualify  under section four hundred one of the
 internal revenue code, whether or  not  the  payments  are  periodic  in
 nature.  Nevertheless,  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  annuities"  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.