STATE OF NEW YORK
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5996
2023-2024 Regular Sessions
IN SENATE
March 27, 2023
___________
Introduced by Sen. LANZA -- read twice and ordered printed, and when
printed to be committed to the Committee on Budget and Revenue
AN ACT to amend the tax law, in relation to increasing the maximum
pension and annuity exclusion from federal adjusted gross income
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-two thousand dollars, which are periodic payments
9 attributable to personal services performed by such individual prior to
10 his retirement from employment, which arise (i) from an employer-employ-
11 ee relationship or (ii) from contributions to a retirement plan which
12 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 term "pensions and annuities" shall not
22 include any lump sum distribution, as defined in subparagraph (D) of
23 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 file a joint state personal income tax
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09778-01-3
S. 5996 2
1 return, the modification provided for in this paragraph shall be
2 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 apply to taxable
9 years beginning on and after such date.
