Bill > A02033

This bill creates a new tax deduction for individuals who are beneficiaries of a deferred compensation plan (a type of retirement savings plan authorized under section 457 of the Internal Revenue Code) and choose to withdraw funds specifically to pay for qualified health insurance premiums. The deduction allows taxpayers to subtract up to $6,000 from their taxable income when they use their deferred compensation distribution to cover health insurance costs. This means that by using their deferred compensation to pay health insurance premiums, the taxpayer can reduce their overall tax liability by $6,000. The bill will take effect immediately and will apply to all taxable years beginning on or after January 1, 2025, providing a potential financial benefit for individuals seeking to manage their health insurance expenses using funds from their deferred compensation plan.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A2033