Bill Text: NY A04336 | 2017-2018 | General Assembly | Introduced

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Bill Title: Relates to the clarification of the applicability of certain exemptions to periodic distributions from a nonqualified pension plan.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-06-14 - held for consideration in ways and means [A04336 Detail]

Download: New_York-2017-A04336-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          4336
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                    February 2, 2017
                                       ___________
        Introduced  by  M. of A. KOLB -- 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  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  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
    24  whether such distributions are reported as wages on IRS Form W-2. Never-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03236-01-7
        A. 4336                             2
     1  theless, the term "pensions and annuities" shall not  include  any  lump
     2  sum distribution, as defined in subparagraph [(D)] (A) of paragraph four
     3  of  subsection  (e)  of section four hundred two of the internal revenue
     4  code  and taxed under section six hundred three of this article. Where a
     5  husband and wife file a joint state  personal  income  tax  return,  the
     6  modification provided for in this paragraph shall be computed as if they
     7  were  filing separate state personal income tax returns. Where a payment
     8  would otherwise come within the meaning of the term "pensions and annui-
     9  ties" as set forth in this paragraph, except  that  such  individual  is
    10  deceased,  such  payment shall, nevertheless, be treated as a pension or
    11  annuity for purposes of this paragraph if such payment  is  received  by
    12  such individual's beneficiary.
    13    § 2. This act shall take effect on the one hundred twentieth day after
    14  it shall have become a law.