NY A06509

Expands the definition of "pensions and annuities" eligible for the $20,000 state income tax exemption to include distributions from nonqualified pension plans that meet the subsection requirements, regardless of whether they are reported as wages on IRS Form W-2.

Applies the existing $20,000 exemption to individuals age 59½ or older who receive periodic distributions from nonqualified pension plans attributable to personal services performed before retirement.

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

Requires married couples filing jointly to compute the modification as if filing separate state returns.

Takes effect 120 days after becoming law.