LOSAP and New York tax lawLOSAP & the change to the New York tax law Domestic

(November 22, 2014) Earlier this year, legislation was passed that exempts certain proceeds paid from Length of Service Awards Programs (LOSAPs) from New York State personal income tax. The exemption applies to periodic distributions that are made from either defined benefit or defined contribution type LOSAPs. In order to qualify for the tax exemption, members must be at least 59 ½ years old. The exemption does not apply to lump sum payments made from a LOSAP
 
It is extremely important that personal tax return forms be completed properly in order to take advantage of this exemption. As a result, we urge volunteers that are receiving periodic distributions from a LOSAP to discuss this new legislation with a professional tax advisor.

Read more information in this FASNY article.