S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2017
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 14, 2025
                                ___________
 
 Introduced  by  M.  of  A.  SLATER, GALLAHAN, DURSO, E. BROWN, GANDOLFO,
   WALSH, DeSTEFANO, GRAY, MAHER, ANGELINO, BRABENEC, BLANKENBUSH, TAGUE,
   BENDETT, BEEPHAN, HAWLEY, K. BROWN, JENSEN, MILLER --  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-SEVEN,
 SIXTY  THOUSAND DOLLARS   FOR   ANY   TAXABLE YEAR BEGINNING ON OR AFTER
 JANUARY FIRST, TWO THOUSAND TWENTY-EIGHT, EIGHTY  THOUSAND  DOLLARS  FOR
 ANY  TAXABLE   YEAR  BEGINNING  ON  OR  AFTER  JANUARY  FIRST, TWO THOU-
 SAND TWENTY-NINE, ONE HUNDRED thousand  dollars  FOR  ANY  TAXABLE  YEAR
 BEGINNING  ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTY, 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 THIRTY, which are
 periodic  payments  attributable  to personal services performed by such
 individual prior to [his] THEIR 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-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05032-01-5
              

 A. 2017                             2
 
 utions  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 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] SPOUSES 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.