Bill Text: NY A06213 | 2019-2020 | General Assembly | Introduced

Bill Title: Increases the tax exemption for pensions and annuities for persons age fifty-nine and one-half or greater from $20,000 to $25,000 in 2021, $30,000 in 2022, $35,000 in 2023 and $40,000 for each subsequent year.

Spectrum: Partisan Bill (Democrat 26-0)

Status: (Introduced) 2019-03-04 - referred to ways and means [A06213 Detail]

Download: New_York-2019-A06213-Introduced.html

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                      March 4, 2019
        Introduced  by  M.  of  A.  MAGNARELLI, GOTTFRIED, STIRPE, COOK, MOSLEY,
          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:
     1    Section 1. Paragraph 3-a of subsection (c) of section 612 of  the  tax
     2  law,  as  amended  by  section  3 of part I of chapter 59 of the laws of
     3  2015, is amended to read as follows:
     4    (3-a) Pensions  and  annuities  received  by  an  individual  who  has
     5  attained  the  age  of  fifty-nine  and one-half, not otherwise excluded
     6  pursuant to paragraph three of this subsection, to the extent includible
     7  in gross income for federal income tax purposes, but not  in  excess  of
     8  [twenty]  twenty-five thousand dollars for any taxable year beginning on
     9  or after January first, two thousand twenty-one, thirty thousand dollars
    10  for any taxable year beginning on or after January first,  two  thousand
    11  twenty-two,  thirty-five thousand dollars for any taxable year beginning
    12  on or after January first, two thousand twenty-three, and forty thousand
    13  dollars in each subsequent year, which are periodic  payments  attribut-
    14  able  to  personal  services  performed  by such individual prior to his
    15  retirement from employment, which arise (i)  from  an  employer-employee
    16  relationship  or  (ii) from contributions to a retirement plan which are
    17  deductible for federal income tax purposes. However, the term  "pensions
    18  and  annuities" shall also include distributions received by an individ-
    19  ual who has attained the age of fifty-nine and one-half from an individ-
    20  ual retirement account or an individual retirement annuity,  as  defined
    21  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.

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