NY State Senate Bill 2017-S460A

Senate Bill S460A

2017-2018 Legislative Session

Grants a personal income tax deduction to taxpayers with a terminal illness who withdraw up to $20,000 from their 401(k) account on a hardship basis

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 24, 2018	print number 460a
Jan 24, 2018	amend and recommit to investigations and government operations
Jan 03, 2018	referred to investigations and government operations
Jan 04, 2017	referred to investigations and government operations

Bill Amendments

Original

A (Active)

2017-S460 - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §612, Tax L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S7333
2015-2016: S1986
2019-2020: S865

2017-S460 - Summary

Grants a personal income tax deduction to taxpayers with a terminal illness who withdraw up to $20,000 from their 401(k) account on a hardship basis.

2017-S460 - Sponsor Memo

                                 BILL NUMBER:  S460

 TITLE OF BILL :  An act to amend the tax law, in relation to
establishing a personal income tax deduction for certain withdrawals
from a 401(k) plan by a taxpayer suffering from a terminal illness

 PURPOSE OR GENERAL IDEA OF BILL :

This bill grants a personal income tax deduction to taxpayers with a
terminal illness who withdraw up to $20,000 from their 401(k) account
on a hardship basis.

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1 adds a new paragraph 42 to subsection c of section 612 of
the tax law to provide that hardship distributions from a retirement
account established pursuant to section 401 (K) of the internal
revenue code shall be exempt from New York state tax, to the extent
includable in federal adjusted gross income, up to a maximum of
$20,000. The exemption shall only be available to those who have a
medically terminable condition which can be expected to result in
death within a period of not more than 12 months.

 JUSTIFICATION :

Federal law governs the granting of 401(k) hardship withdrawals. This

bill will assist those who are facing a life ending crisis who have
proven their hardship case for a withdraw of 401 (k) funds on a
hardship basis in accordance with federal regulations applicable to
such plans. it is unfair to subject terminally ill individuals to
state income taxes when they have proven it necessary to have access
to these funds. These funds are often needed to pay medical bills and
other expenses which accrue when a person faces the challenges
associated with a terminal illness. The situation can be magnified
when the individual is no longer able to continue in an employment
situation. It is only equitable that New York forgoes taxation on
monies that an individual has earned which become necessary for he or
she to confront medical and personal challenges.

 PRIOR LEGISLATIVE HISTORY :

2015,2016: S.1986A Referred to Investigations and Gov't Operations
2014: S.7333 Referred to Investigations and Gov't Operations

 FISCAL IMPLICATIONS :

Undetermined.

 EFFECTIVE DATE :
This act shall take effect immediately and shall apply to all
subsequent taxable years.

2017-S460 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    460
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2017
                                ___________
 
 Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the tax law, in  relation  to  establishing  a  personal
   income  tax  deduction for certain withdrawals from a 401(k) plan by a
   taxpayer suffering from a terminal illness
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subsection (c) of section 612 of the tax law is amended by
 adding a new paragraph 42 to read as follows:
   (42) HARDSHIP DISTRIBUTIONS  FROM  A  RETIREMENT  ACCOUNT  ESTABLISHED
 PURSUANT  TO  SECTION  401(K) OF THE INTERNAL REVENUE CODE TO THE EXTENT
 INCLUDABLE IN FEDERAL ADJUSTED GROSS INCOME, PROVIDED, HOWEVER, THAT THE
 EXCLUSION PROVIDED FOR IN THIS PARAGRAPH SHALL NOT EXCEED  TWENTY  THOU-
 SAND  DOLLARS;  PROVIDED,  FURTHER,  THAT  SUCH  EXCLUSION SHALL ONLY BE
 AVAILABLE BY REASON OF  A  MEDICALLY  DETERMINABLE  PHYSICAL  OR  MENTAL
 IMPAIRMENT  OF AN INDIVIDUAL TAXPAYER WHICH CAN BE EXPECTED TO RESULT IN
 DEATH WITHIN A PERIOD OF NOT MORE THAN TWELVE MONTHS.
   § 2. This act shall take effect immediately and shall apply to the tax
 year in which it takes effect and all subsequent tax years.
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05743-01-7

2017-S460A (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §612, Tax L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S7333
2015-2016: S1986
2019-2020: S865

2017-S460A (ACTIVE) - Summary

Grants a personal income tax deduction to taxpayers with a terminal illness who withdraw up to $20,000 from their 401(k) account on a hardship basis.

2017-S460A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S460A

SPONSOR: YOUNG
 
TITLE OF BILL:

An act to amend the tax law, in relation to establishing a personal
income tax deduction for certain withdrawals from a 401(k) plan by a
taxpayer suffering from a terminal illness

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill grants a personal income tax deduction to taxpayers with a
terminal illness who withdraw up to $20,000 from their 401(k) account on
a hardship basis.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 adds a new paragraph 44 to subsection c of section 612 of the
tax law to provide that hardship distributions from a retirement account
established pursuant to section 401 (K) of the internal revenue code
shall be exempt from New York state tax, to the extent includable in

federal adjusted gross income, up to a maximum of $20,000. The exemption
shall only be available to those who have a medically terminable condi-
tion which can be expected to result in death within a period of not
more than 12 months.

 
JUSTIFICATION:

Federal law governs the granting of 401(k) hardship withdrawals. This
bill will assist those who are facing a life ending crisis who have
proven their hardship case for a withdraw of 401 (k) funds on a hardship
basis in accordance with federal regulations applicable to such plans.
It is unfair to subject terminally ill individuals to state income taxes
when they have proven it necessary to have access to these funds. These
funds are often needed to pay medical bills and other expenses which
accrue when a person faces the challenges associated with a terminal
illness. The situation can be magnified when the individual is no longer
able to continue in an employment situation. It is only equitable that
New York forgoes taxation on monies that an individual has earned which
become necessary for he or she to confront medical and personal chal-
lenges.

 
PRIOR LEGISLATIVE HISTORY:

2017: S.460 Referred to Investigations and Gov't Operations
2015, 2016:  S.1986A Referred to Investigations and Gov't Operations
2014: S.7333 Referred to Investigations and Gov't Operations

 
FISCAL IMPLICATIONS:

Undetermined.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to all subsequent
taxable years.

2017-S460A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  460--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2017
                                ___________
 
 Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations -- recommitted to the Committee on Investigations  and
   Government  Operations  in  accordance  with  Senate Rule 6, sec. 8 --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted to said committee
 
 AN  ACT  to  amend  the  tax law, in relation to establishing a personal
   income tax deduction for certain withdrawals from a 401(k) plan  by  a
   taxpayer suffering from a terminal illness
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subsection (c) of section 612 of the tax law is amended  by
 adding a new paragraph 44 to read as follows:
   (44)  HARDSHIP  DISTRIBUTIONS  FROM  A  RETIREMENT ACCOUNT ESTABLISHED
 PURSUANT TO SECTION 401(K) OF THE INTERNAL REVENUE CODE  TO  THE  EXTENT
 INCLUDABLE IN FEDERAL ADJUSTED GROSS INCOME, PROVIDED, HOWEVER, THAT THE
 EXCLUSION  PROVIDED  FOR IN THIS PARAGRAPH SHALL NOT EXCEED TWENTY THOU-
 SAND DOLLARS; PROVIDED, FURTHER,  THAT  SUCH  EXCLUSION  SHALL  ONLY  BE
 AVAILABLE  BY  REASON  OF  A  MEDICALLY  DETERMINABLE PHYSICAL OR MENTAL
 IMPAIRMENT OF AN INDIVIDUAL TAXPAYER WHICH CAN BE EXPECTED TO RESULT  IN
 DEATH WITHIN A PERIOD OF NOT MORE THAN TWELVE MONTHS.
   § 2. This act shall take effect immediately and shall apply to the tax
 year in which it takes effect and all subsequent tax years.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05743-02-8

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