NY A01566

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

Maintains the $20,000 annual exemption limit for individuals age 59½ or older receiving periodic payments from qualified employer-employee relationships or retirement plans with deductible contributions.

Clarifies that the exemption applies to nonqualified pension plan distributions even if they are not reported as wages on Form W-2, provided they otherwise meet the statutory requirements.

Excludes lump sum distributions as defined in Internal Revenue Code Section 402(e)(4)(A) from the exemption eligibility.

Takes effect 120 days after enactment into law.