Lump-sum Qualified Pension Plan (QPP) death benefit payments are federally taxed in the year that they are received (except for any portion attributable to after-tax member contributions). They are not subject to New York State or New York City taxes; however, beneficiaries residing in a state other than New York should check with their state tax agency about the tax consequences of these payments.

QPP benefits distributed to beneficiaries as an annuity are subject to federal income taxes. They are not subject to New York State and New York City taxes; however, beneficiaries residing in a state other than New York should check with their state tax agency about the tax consequences of these payments.

Tax-Deferred Annuity (TDA) Program benefits paid in a lump sum and payments distributed as an annuity generally are federally taxable and may be subject to state and local taxes.