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History
- Print number 228a
- Amend and recommit to investigations and government operations
- Referred to investigations and government operations
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Grants a state personal income tax deduction for retirement plan distributions used to purchase long-term care insurance
In Assembly Committee · Ways And Means · Sponsor Steven Englebright
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S228A
Title of bill
An act to amend the tax law, in relation to exempting distributions from individual retirement accounts and individual retirement annuities from state personal income taxation when such distributions are used to purchase long-term health care insurance
Purpose
Allows tax free withdrawals from retirement IRA's and retirement annuities for the purchase of the premiums for long-term care insurance.
Summary of provisions
Section 1 amends section 612 of the tax law by adding a new subsection 3-d which exempts distributions from individual retirement accounts and individual retirement annuities from state personal taxation when such distributions are used to purchase long-term health care insurance.
Justification
Planning for future long-term care needs is a goal that New York State continues to support as a way to save Medicaid dollars and as a way for individuals to be able to manage their own care and improve outcomes. Different strategies and ideas need to be explored to encourage individuals to think in advance and to plan for their personal long-term care needs.
This legislation provides one more tool for individuals to accomplish this goal by allowing retirement IRA's and retirement annuities to be tapped tax free for the purpose of purchasing long-term care insurance. Long-term care insurance can be prohibitively costly for some individuals yet these individuals may have a retirement IRA or retirement annuity that would afford them an opportunity to purchase a long-term care insurance. Authorizing tax free withdrawals from these accounts to cover the costs of long-term care insurance premiums complies with the interest and goals of the state, and opens up an avenue of planning and affording long-term care insurance should one's monthly income not be sufficient to afford the premiums.
Legislative history
S.107/A.918 of 2007/2008: Referred to Senate Investigations and Government Operations Committee. S.1397/A.2155 of 2009/2010: Referred to Senate Investigations and Government Operations Committee.
Effective date
Immediately and shall apply to taxable years commencing on the first of January in the year in which the act shall take effect.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.