STATE OF NEW YORK
________________________________________________________________________
1566
2013-2014 Regular Sessions
IN ASSEMBLY(Prefiled)
January 9, 2013
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Introduced by M. of A. KOLB, CORWIN -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to clarifying the applicability
of certain exemptions to periodic distributions from a nonqualified
pension plan
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 chapter 760 of the laws of 1992, is amended to read
3 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 thousand dollars, which are periodic payments attributable to
9 personal services performed by such individual prior to his retirement
10 from employment, which arise (i) from an employer-employee relationship
11 or (ii) from contributions to a retirement plan which are deductible for
12 federal income tax purposes. However, the term "pensions and annuities"
13 shall also include distributions received by an individual who has
14 attained the age of fifty-nine and one-half from an individual retire-
15 ment account or an individual retirement annuity, as defined in section
16 four hundred eight of the internal revenue code, and distributions
17 received by an individual who has attained the age of fifty-nine and
18 one-half from self-employed individual and owner-employee retirement
19 plans which qualify under section four hundred one of the internal
20 revenue code, whether or not the payments are periodic in nature. The
21 term "pensions and annuities" shall also include distributions from
22 pension plans that are not qualified under the Internal Revenue Code,
23 but otherwise meet the requirements of this subsection, regardless of
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03327-01-3
A. 1566 2
1 whether such distributions are reported as wages on IRS Form W-2. Never-
2 theless, the term "pensions and annuities" shall not include any lump
3 sum distribution, as defined in subparagraph (A) of paragraph four of
4 subsection (e) of section four hundred two of the internal revenue code
5 and taxed under section six hundred three of this article. Where a
6 husband and wife file a joint state personal income tax return, the
7 modification provided for in this paragraph shall be computed as if they
8 were filing separate state personal income tax returns. Where a payment
9 would otherwise come within the meaning of the term "pensions and annui-
10 ties" as set forth in this paragraph, except that such individual is
11 deceased, such payment shall, nevertheless, be treated as a pension or
12 annuity for purposes of this paragraph if such payment is received by
13 such individual's beneficiary.
14 § 2. This act shall take effect on the one hundred twentieth day after
15 it shall have become a law.
