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NYS PENSION EXCLUSION $20,000

  • 1.  NYS PENSION EXCLUSION $20,000

    Posted 26 days ago
    NY allows a beneficiary a subtraction adjustment up to $20,000, if the decedent would have been entitled to it had the decedent continued to live. However, if there was more than 1 beneficiary the $20,000 exclusion must be allocated to each beneficiary based on a fraction whose numerator is value of pension inherited by beneficiary and the denominator is total value inherited by all beneficiaries.
    Based on above- if decedent had one IRA account worth $90,000 and 2 beneficiaries who properly retitled the IRA to their respective rollover IRA for $45,000 each, they would each be entitled to exclude only $10,000
    (45,000/90,000 x 20,000) in a year when distributions are received. ?

    2nd question- what happens if 1 of the beneficiaries are not a NY resident and therefore doesn't need to report any income to NY. Is the other beneficiary still limited to only $10,000 exclusion or can they use $20,000 since no other person is claiming the subtraction adjustment?


    Ken
    -------------------------------------------------
    Kenneth Schuster CPA
    6800 Jericho Tpke  #209W
    Syosset, NY 11791
    (516) 364-1600 (Voice)   (516) 364-1603 (Fax)




  • 2.  RE: NYS PENSION EXCLUSION $20,000

    Bronze Most Valuable Member
    Posted 25 days ago
    The NY beneficiary only gets a $10,000 exclusion, even tho the other beneficiary is a non NY resident and can't use his/her share of the $20,000 exclusion.
    Bob
     
    Robert S. Lusthaus, CPA, Esq.
    497 South Oyster Bay Road
    Plainview, NY 11803-3316
    Tel: 516-937-1366 x102
    Fax: 516-938-2915
    E-mail: 
    lusthaus@aol.com
    Website: 
    www.lusthauscpa.com





  • 3.  RE: NYS PENSION EXCLUSION $20,000

    Posted 25 days ago
    Thank you

    Ken Schuster
    Sent from my i phone