Includes retirement plans in the exemption for pensions and annuities for certain persons and increases such exemption

◆ The sponsor's argument

Why George Borrello says this is needed

Currently, the limit on retirement plan tax exemptions is twenty thou- sand dollars, a limit that was set in 1981 and has not increased since. Due to various economic factors such as inflation and the cost of living, that twenty thousand dollars is not worth the same amount today as it was in 1981. This bill aims to rectify that and allow our older New Yorkers to keep more of their income when at a point in their life they are likely living off of a fixed income that comes from their retirement plans. Increasing this exemption is not a new and untested idea, New Jersey for example, already has their tax exemption limit set to one hundred thou- sand dollars. Several other states also have a higher limit than New York currently does while also having a lower cost of living. New York needs to increase its current limit. Additionally, older New Yorkers would not need to stay in the workforce longer than they want or need to or be forced to return to the workforce in order to supplement their income. Furthermore, reducing the tax burden on our aging population will help encourage them to remain in New York, closer to their families.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.