Magazine article The CPA Journal

New York Beneficiaries Now Entitled to Pension and Annuity Exclusion

Magazine article The CPA Journal

New York Beneficiaries Now Entitled to Pension and Annuity Exclusion

Article excerpt

New rules took effect for 1999 for taxable income from pensions and annuities. As before, in New York State, an individual who is age 59 1/2 or older can exclude from taxable income up to $20,000 of pension and annuity distributions received each year. To qualify for this exclusion, the pension and annuity must generally be a series of periodic payments attributable to personal services that the individual performed prior to retirement. In addition, the payments must be either attributable to an employeremployee relationship or from contributions made to a tax-deductible retirement plan, such as a Keogh plan or IRA.

Under an exception to the rule requiring periodic payments, distributions from IRAs or Keogh plans maintained by self-employed individuals qualify for the exclusion regardless of whether the distributions are periodic payments or lumpsum distributions.

Because of the new rules, beginning in tax year 1999, this exclusion extends to beneficiaries that receive pension and annuity payments created by a decedent. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.