NY A00059

Amends New York Tax Law Section 603 to exempt lump sum distributions from separate taxation when used to pay post-secondary education loans, including principal, interest, and servicing costs.

Amends Tax Law Section 612 to extend the exemption to pensions and annuities received from employer-employee relationships, retirement plans, individual retirement accounts, and self-employed retirement plans when used for post-secondary education loan payments.

Applies the exemption to loan payments made during both active repayment and deferment periods, including account maintenance and borrower communication activities.

Takes effect immediately and applies retroactively to taxable years beginning on or after January 1, 2016.