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Author: Bob78164 Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 123155  
Subject: Re: Retirement,Moving,&State Tax Date: 4/10/1999 12:25 AM
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RBrowndog writes:

My apologies if this question sounds dumb or has been asked recently. I live in a state with state income tax. If when retiring I move to a state with no state income tax. Do I still have to pay the first state income tax on my pension, 401k, and other investments distributions? If I move to another state with state tax. Will I have to pay income tax to both states?

I reply:

Your question's not dumb; I asked it myself last year. Due to a Supreme Court decision roughly a decade old, your former state is not entitled to tax you on your tax-deferred investments when you move. Nor can your former state tax you in any year when you are not domiciled (which means you've moved away for good) in the state nor earn income there. --Bob
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