xanuda, Joe, et al:
I just called TIAA, they reaffirmed what xanuda heard, that only NY residents, or folks with some type of NY income who file tax returns there, would be taxed on a rollover, post 2002. So xanuda, you did hear correctly (at least according to the reps you & I spoke with). Since I have no plans to work in NY, move there, or own property there, it looks like I'll go ahead and sign up with them.
"Also I think this practice goes against the idea of "helping families saving for college" and would consider taking my money out of NY plan as a matter of principal. Of course, this is just my personal $.02."
I agree totally. To the folks that do live and/or work in NY, I'm sorry this has happened, I agree, it really is not fair.
Take care.
kgreener