NY A03044

Expands the definition of "pensions and annuities" eligible for New York State income tax exemption to include distributions from nonqualified pension plans that meet specified requirements, regardless of whether reported as wages on IRS Form W-2.

Maintains the existing $20,000 annual exemption limit for pension and annuity income received by individuals age 59½ and older, including distributions from IRAs, individual retirement annuities, and self-employed retirement plans.

Clarifies that the exemption applies to nonqualified plan distributions that are attributable to personal services performed before retirement and arise from employer-employee relationships or tax-deductible retirement plan contributions.

Excludes lump sum distributions as defined under Internal Revenue Code section 402(e)(4)(A) from the pension and annuity exemption.

Takes effect 120 days after becoming law.