General.
(a) General. Where a nonresident individual, estate or trust receives a lump sum distribution on or after January 1, 1978, and elects the special 10-year averaging method under section 402(e) of the Internal Revenue Code with respect to the ordinary income portion of the lump sum distribution, the nonresident recipient of the distribution is subject to the New York State separate tax imposed by section 601-C of the Tax Law to the extent that the ordinary income portion of such distribution is wholly or partly derived from or connected with New York State sources.
(1)The ordinary income portion of a lump sum distribution is wholly derived from or connected with New York State sources if the distribution is received by a nonresident taxpayer from a qualified plan established for either a resident individ#
(1) The ordinary income portion of a lump sum distribution is wholly derived from or connected with New York State sources if the distribution is received by a nonresident taxpayer from a qualified plan established for either a resident individual or for a nonresident individual who performed services wholly within New York State as an employee, a sole proprietor or a partner. See paragraph (b)(1) of this section for amount of the separate tax.
(2)The ordinary income portion of a lump sum distribution is partly derived from or connected with New York State sources if the distribution is received by a nonresident taxpayer from a qualified plan established for a nonresident individual#
(2) The ordinary income portion of a lump sum distribution is partly derived from or connected with New York State sources if the distribution is received by a nonresident taxpayer from a qualified plan established for a nonresident individual who performed services partly within and partly without New York State as an employee, a sole proprietor or a partner. See paragraph (b)(2) of this section for the amount of the separate tax.