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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13143
Experience:  15years with H & R Block. Divisional leader, Instructor
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I live in California and moving to Nevada this August to

Customer Question

I live in California and moving to Nevada this August to retire , I have a 409a that I can only take in a lump sum ( deferred compensation ) that I originally thought I would take in 2017 Jan. Can I take the 409a money in August when I retire and not pay any state income tax on it since I'll be living in Nevada ?
Submitted: 4 months ago.
Category: Tax
Expert:  Robin D. replied 4 months ago.


If you are a non resident of CA when the distribution is made to you, CA will not be entitled to tax it.

Part-year residents of California are taxed on all income received while a resident and only on income from California sources while a nonresident. Even though this 409a was from a time that you were in CA and deferred from tax, the distribution is not taxed if you are not a resident.

You would need to sever all ties with CA and set your residency in Nevada prior to getting the 409a.

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