Taxation of 403(b) Distributions by New York State

[joel]

Alonzo;

The advisory opinion states:  "The distributions from that plan are specifically exempt from New York State and New York City personal income taxes pursuant to section 13-561 of the New York Administrative Code".  

Section 13-561 refers to the DB TRS pension plan not  the TRS 403(b) plan.  This is why the legislature specifically wrote section 13-561 i 3 which states:   “The exemption from state and municipal tax provided in section 13-561 for return of contributions shall not apply to withdrawal of tax-deferred annuity net contributions.”