@Aminy they are an IT-203 addition modification that gets added back and taxed by NYS. Its for a different purpose than wages. NYS taxes your contributions, but any subsequent payments from the plan, are tax-free to NYS residents. It in essence turns the NYS/NYC public retirement plan, into a Roth type system, under the tax law.
So if you worked long enough for the agency, you could retire in NY and save taxes. About the only time moving into NY is going to save you money.
Kristine L. Bly, EA Private Client Services / Residency / Tax Controversy
Partner, Cohen & Company
