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Q.Can moving to another state when I retire save me state taxes on my IRA, 401(k), and pension withdrawals?
A.Money from retirement plans, including 401(k)s, IRAs, pensions, and other plans, are taxed according to your residence when you receive the funds from the IRA, 401(k) or pension. If you move from a state with a high income tax, such as California or New York, to one with little or no income tax (Texas, Nevada and Florida have no state tax), you will indeed save money on state income tax.
Establishing residence in a new state typically takes 6 months to 1 year.
IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained on this web site is not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed on a taxpayer under the U.S. Internal Revenue Service.
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