S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7973
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              August 18, 2023
                                ___________
 
 Introduced by M. of A. SLATER -- read once and referred to the Committee
   on Ways and Means
 
 AN  ACT  to amend the tax law, in relation to including retirement plans
   in the exemption for pensions and annuities for certain persons and to
   increasing such exemption
 
   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 AND OTHER RETIREMENT PLANS 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] FORTY THOUSAND  DOLLARS  FOR  ANY  TAXABLE
 YEAR  BEGINNING ON OR AFTER JANUARY  FIRST,  TWO  THOUSAND  TWENTY-FIVE,
 SIXTY THOUSAND DOLLARS  FOR  ANY   TAXABLE YEAR BEGINNING  ON  OR  AFTER
 JANUARY  FIRST, TWO THOUSAND TWENTY-SIX, EIGHTY THOUSAND DOLLARS FOR ANY
 TAXABLE  YEAR  BEGINNING  ON  OR  AFTER   JANUARY   FIRST, TWO  THOUSAND
 TWENTY-SEVEN,  ONE  HUNDRED thousand dollars FOR ANY TAXABLE YEAR BEGIN-
 NING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-EIGHT, MULTIPLIED BY
 ONE PLUS THE PERCENTAGE BY  WHICH  THE  CONSUMER  PRICE  INDEX  FOR  THE
 PRECEDING CALENDAR YEAR EXCEEDS THE CONSUMER PRICE INDEX FOR THE TAXABLE
 YEAR  BEGINNING  ON  OR  AFTER JANUARY FIRST, TWO THOUSAND TWENTY-EIGHT,
 which are periodic payments attributable 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 distrib-
 utions received by an individual who has attained the age of  fifty-nine
 and  one-half  from  an  individual  retirement account or an individual
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11929-02-3
              

 A. 7973                             2
 
 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 indi-
 vidual  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. 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.
 FOR PURPOSES OF THIS PARAGRAPH, "CONSUMER PRICE INDEX" MEANS THE AVERAGE
 OF THE CONSUMER PRICE INDEX AS OF THE CLOSE OF THE  TWELVE-MONTH  PERIOD
 ENDING ON AUGUST THIRTY-FIRST OF SUCH TAXABLE YEAR FOR ALL-URBAN CONSUM-
 ERS PUBLISHED BY THE UNITED STATES DEPARTMENT OF LABOR.
   § 2. This act shall take effect immediately.