New York S 5113: Includes retirement plans in the exemption for pensions and annuities for certain persons and increases such exemption

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S05113 Summary:

BILL NOS05113 

&nbsp

SAME ASSAME AS A02017

&nbsp

SPONSORBORRELLO

&nbsp

COSPNSR

&nbsp

MLTSPNSR

&nbsp

Amd §612, Tax L

&nbsp

Includes retirement plans in the exemption for pensions and annuities for certain persons; increases such exemption to one hundred thousand dollars as adjusted by the consumer price index annually.

Go to top S05113 Actions:

BILL NOS05113 

&nbsp

02/19/2025REFERRED TO BUDGET AND REVENUE

01/07/2026REFERRED TO BUDGET AND REVENUE

Go to topS05113 Committee&nbspVotes:

Go to topS05113 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS05113 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 5113

 2025-2026 Regular Sessions

 IN SENATE

 February 19, 2025
 ___________

 Introduced by Sen. BORRELLO -- 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 including retirement plans
 in the exemption for pensions and annuities for certain persons and to
 increasing such exemption

 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 and other retirement plans received by
 5 an individual who has attained the age of fifty-nine and one-half, not
 6 otherwise excluded pursuant to paragraph three of this subsection, to
 7 the extent includible in gross income for federal income tax purposes,
 8 but not in excess of [twenty] forty thousand dollars for any taxable
 9 year beginning on or after January first, two thousand twenty-seven,
 10 sixty thousand dollars for any taxable year beginning on or after
 11 January first, two thousand twenty-eight, eighty thousand dollars for
 12 any taxable year beginning on or after January first, two thou-
 13 sand twenty-nine, one hundred thousand dollars for any taxable year
 14 beginning on or after January first, two thousand thirty, multiplied by
 15 one plus the percentage by which the consumer price index for the
 16 preceding calendar year exceeds the consumer price index for the taxable
 17 year beginning on or after January first, two thousand thirty, which are
 18 periodic payments attributable to personal services performed by such
 19 individual prior to [his] their retirement from employment, which arise
 20 (i) from an employer-employee relationship or (ii) from contributions to
 21 a retirement plan which are deductible for federal income tax purposes.
 22 However, the term "pensions and annuities" shall also include distrib-
 23 utions received by an individual who has attained the age of fifty-nine
 24 and one-half from an individual retirement account or an individual

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD05032-01-5

 S. 5113 2

 1 retirement annuity, as defined in section four hundred eight of the
 2 internal revenue code, and distributions received by an individual who
 3 has attained the age of fifty-nine and one-half from self-employed indi-
 4 vidual and owner-employee retirement plans which qualify under section
 5 four hundred one of the internal revenue code, whether or not the
 6 payments are periodic in nature. Nevertheless, the term "pensions and
 7 annuities" shall not include any lump sum distribution, as defined in
 8 subparagraph (D) of paragraph four of subsection (e) of section four
 9 hundred two of the internal revenue code and taxed under section six
 10 hundred three of this article. Where [a husband and wife] spouses file a
 11 joint state personal income tax return, the modification provided for in
 12 this paragraph shall be computed as if they were filing separate state
 13 personal income tax returns. Where a payment would otherwise come within
 14 the meaning of the term "pensions and annuities" as set forth in this
 15 paragraph, except that such individual is deceased, such payment shall,
 16 nevertheless, be treated as a pension or annuity for purposes of this
 17 paragraph if such payment is received by such individual'