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Sponsors
Senator · Senate District 38
No co-sponsors yet.
History
- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S5463
Title of bill
An act to amend the tax law, in relation to the personal wealth building savings program
Purpose
To encourage personal savings through the creation of personal wealth building savings accounts, which are similar to the 529 college tuition savings accounts.
Summary of provisions
Section 1 of the bill adds a new section 39 to the tax law as follows:
Subdivision 1 provides definitions.
Subdivision 2 directs the Commissioner of Taxation and Finance to establish the personal wealth building savings program.
Subdivision 3 outlines the powers of the Commissioner with regard to the program, which include the solicitation of proposals from financial organizations to act as depositories and managers of the program; the minimum requirements of any management contract for the program; and audit requirements for any organization that's selected for the program.
Subdivision 4 provides the program description and requirements.
Section 2 of the bill adds a new paragraph (40) to subsection (b) of section 612 of the tax law to add a non-qualifying distribution from a personal wealth building savings account to a person's adjusted gross income.
Section 3 of the bill adds a new paragraph (40) to subsection (c) of section 612 of the tax law to exempt a contribution to a personal wealth building savings account from a person's adjusted gross income.
Section 4 of the bill adds a new subsection (i) to section 601 of the tax law to exempt personal wealth building savings accounts from inclusion as personal income, subject to taxation.
Section 5 of the bill provides the effective date.
Justification
Personal savings can come in handy in many circumstances: when buying a house, paying for a child's education, retiring or in cases of unexpected need, to name a few. Sadly, the personal savings rate among Americans is at near record low levels. This legislation is designed to provide an incentive for lower-income individuals to save money by creating personal wealth building savings accounts, which are similar to 529 college tuition accounts. The account holder would be able to choose from a variety of investment options and would be allowed a tax deduction, up to $5,000 per year, for contributions to a personal wealth building savings account.
Legislative history
New bill.
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately and shall apply to taxable years commencing after such effective date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.