After remand from the New York State Tax Appeals Tribunal, an Administrative Law Judge has again held that a retired SUNY professor’s distribution from a rollover IRA did not qualify for the 100% exclusion from the personal income tax for pensions paid to State employees. Matter of Peter and Marguerite Kane, DTA No. 824767 (N.Y.S. Div. of Tax App., Mar. 3, 2016). In response to the Tribunal’s direction to more completely address the question of how the rollover of an otherwise qualifying SUNY pension into an IRA changed the nature of the taxpayer’s pension, the ALJ reviewed the basis for the statutory exemption for New York State employee pension income in Tax Law § 612(c)(3)(i) and 20 NYCRR 112.3(c)(1), and analyzed at length the different treatment of IRAs from that of state pension funds, including the maximum control and flexibility allowed under IRAs, significantly different regulatory requirements, and the lack of any direct contribution of the funds by the State, to reach the conclusion that distributions from an IRA were not entitled to the exemption.