S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    259
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by  M.  of  A.  MAGNARELLI,  STIRPE, COOK, STECK, BENEDETTO,
   JONES, EACHUS -- 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-SEVEN THOUSAND DOLLARS FOR ANY TAXABLE YEAR BEGINNING ON
 OR  AFTER  JANUARY  FIRST,  TWO  THOUSAND  TWENTY-SEVEN, THIRTY THOUSAND
 DOLLARS FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER  JANUARY  FIRST,  TWO
 THOUSAND TWENTY-EIGHT, THIRTY-FIVE THOUSAND DOLLARS FOR ANY TAXABLE YEAR
 BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-NINE, 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 employer-em-
 ployee 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.
              

                                                            LBD00834-01-5
 A. 259                              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] 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.
   § 2. This act shall take effect immediately.