What's happening
This bill makes the first $100,000 of an individual's private pension income non-taxable under New York State law.
Why it matters
Significantly increases the amount of private pension income exempt from New York State income tax—from $20,000 to $100,000 per individual—potentially allowing retirees to keep much more of their retirement savings.
Removes the minimum age requirement (previously 59½) for pension income exclusion, expanding eligibility to younger retirees and beneficiaries, not just those over a certain age.
Could make New York a more attractive home for retirees and those with significant private pension income, possibly affecting migration patterns and the state’s competitiveness with lower-tax states.
May have a substantial fiscal impact on the state budget, as it reduces state tax revenue from a large group of taxpayers, which could lead to changes in funding for public services or shifts in tax policy elsewhere.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Make Pensions Tax-Free
Plain English, a few words. Used as the page title.
Sponsors
13 Co-sponsors
2 Multi-sponsors
History
- Held for consideration in ways and means
- Referred to ways and means
- Referred to ways and means
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
879
2019-2020 Regular Sessions
IN ASSEMBLY
January 11, 2019
Introduced by M. of A. KOLB, McDONOUGH, FINCH, FRIEND, DiPIETRO, BRABE- NEC, SMITH, MIKULIN, ASHBY -- Multi-Sponsored by -- M. of A. BARCLAY, THIELE -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to making the first one hundred thousand dollars of an individuals' private pension non-taxable
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph 3-a of subsection (c) of section 612 of the tax law, as amended by section 3 of part I of chapter 59 of the laws of 2015, is amended to read as follows:
(3-a) Pensions and annuities received by an individual [who has attained the age of fifty-nine and one-half], not otherwise excluded pursuant to paragraph three of this subsection, to the extent includible in gross income for federal income tax purposes, but not in excess of [twenty] one hundred thousand dollars, which are periodic payments attributable to personal services performed by such individual prior to his retirement from employment, which arise (i) from an employer-employee relationship or (ii) from contributions to a retirement plan which are deductible for federal income tax purposes. [However, the term "pensions and annuities" shall also include distributions received by an individual who has attained the age of fifty-nine and one-half from an individual retirement account or an individual retirement annuity, as defined in section four hundred eight of the internal revenue code, and distributions received by an individual who has attained the age of fifty-nine and one-half from self-employed individual and owner-employee retirement plans which qualify under section four hundred one of the internal revenue code, whether or not the payments are periodic in nature. Nevertheless, the] The term "pensions and annuities" shall not include any lump sum distribution, as defined in subparagraph [(D)] (A) of paragraph four of subsection (e) of section four hundred two of the internal revenue code and taxed under section six hundred three of this
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04102-01-9
A. 879 2
article. Where a husband and wife file a joint state personal income tax return, the modification provided for in this paragraph shall be computed as if they were filing separate state personal income tax returns. Where a payment would otherwise come within the meaning of the term "pensions and annuities" as set forth in this paragraph, except that such individual is deceased, such payment shall, nevertheless, be treated as a pension or annuity for purposes of this paragraph if such payment is received by such individual's beneficiary.
§ 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after the first of January of the year in which it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.