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A09527 Summary:

BILL NO	A09527
SAME AS	No Same As
SPONSOR	Barclay (MS)
COSPNSR	McDonough, Friend, DiPietro, Brabenec, Smith, Mikulin, Walsh, Miller, Manktelow, Gallahan, Simpson, Fitzpatrick, Lemondes, DeStefano, Hawley, Tague, Angelino
MLTSPNSR	Durso
Amd §612, Tax L
Makes the first one hundred thousand dollars of an individual's private pension non-taxable.

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A09527 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9527
 
                   IN ASSEMBLY
 
                                    January 14, 2026
                                       ___________
 
        Introduced  by  M. of A. BARCLAY, McDONOUGH, FRIEND, DiPIETRO, BRABENEC,
          SMITH, MIKULIN, WALSH, MILLER, MANKTELOW, GALLAHAN,  SIMPSON,  FITZPA-
          TRICK, LEMONDES, DeSTEFANO, HAWLEY, TAGUE, ANGELINO -- Multi-Sponsored
          by  --  M. of A.   DURSO -- read once and referred to the Committee on
          Ways and Means
 
        AN ACT to amend the tax law, in relation to making the first one hundred
          thousand dollars of an individuals' private pension non-taxable
 
          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] one hundred  thousand  dollars,  which  are  periodic  payments
     9  attributable  to personal services performed by such individual prior to
    10  [his] their retirement from employment, which arise (i) from an  employ-
    11  er-employee relationship or (ii) from contributions to a retirement plan
    12  which are deductible for federal income tax purposes. [However, the term
    13  "pensions and annuities" shall also include distributions received by an
    14  individual  who  has attained the age of fifty-nine and one-half from an
    15  individual retirement account or an individual  retirement  annuity,  as
    16  defined  in section four hundred eight of the internal revenue code, and
    17  distributions received by an individual who  has  attained  the  age  of
    18  fifty-nine and one-half from self-employed individual and owner-employee
    19  retirement  plans  which  qualify  under section four hundred one of the
    20  internal revenue code, whether or  not  the  payments  are  periodic  in
    21  nature.  Nevertheless,  the] The term "pensions and annuities" shall not
    22  include any lump sum distribution, as defined in subparagraph [(D)]  (A)
    23  of  paragraph  four of subsection (e) of section four hundred two of the
    24  internal revenue code and taxed under section six hundred three of  this
    25  article.  Where [a husband and wife] spouses file a joint state personal
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14335-01-6
        A. 9527                             2

     1  income tax return, the modification provided for in this paragraph shall
     2  be computed as if they were filing separate state  personal  income  tax
     3  returns.  Where a payment would otherwise come within the meaning of the
     4  term  "pensions  and  annuities"  as set forth in this paragraph, except
     5  that such individual is deceased, such payment shall,  nevertheless,  be
     6  treated  as  a pension or annuity for purposes of this paragraph if such
     7  payment is received by such individual's beneficiary.
     8    § 2. This act shall take effect immediately and  shall  be  deemed  to
     9  have  been in full force and effect on and after the first of January of
    10  the year in which it shall have become a law.

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