New York Pension and Annuity Income (Exclusion)

Did you enter an amount on line 9 or 10 that was not from a NYS or local government pension plan or federal government pension plan? If No, go to line 30.

If Yes, and you were 59½ before January 1, 2021, enter the qualifying pension and annuity income included in your 2021 recomputed federal AGI, but not more than $20,000. If you became 59½ during 2021, enter only the amount received after you became 59½, but not more than $20,000. If you received pension and annuity income and are married, or received pension and annuity income as a beneficiary, see below.

$20,000 limit – You may not take a pension and annuity income exclusion that exceeds $20,000, regardless of the source(s) of the income.

Qualifying pension and annuity income includes:

• periodic payments for services you performed as an employee before you retired;

• periodic and lump-sum payments from an IRA, but not payments derived from contributions made after you retired;

• periodic distributions from government (IRC section 457) deferred compensation plans;

• periodic distributions from an annuity contract (IRC section 403(b)) purchased by an employer for an employee and the employer is a corporation, community chest, fund, foundation, or public school;

• periodic payments from an HR-10 (Keogh) plan, but not payments derived from contributions made after you retired;

• lump-sum payments from an HR-10 (Keogh) plan, but only if federal Form 4972 is not used. Do not include that part of your payment that was derived from contributions made after you retired;

• periodic distributions of benefits from a cafeteria plan (IRC section 125) or a qualified cash or deferred profit-sharing or stock bonus plan (IRC section 401(k)), but not distributions derived from contributions made after you retired.