Hello tax experts and enthusiasts, my parents are planning to move from Washington state (where there is no state income tax) to California sometime in 2022 in order to be closer to their grandson. They are in their 70s and a significant part of their retirement savings is in IRAs, they also own a home in WA that they plan to sell.
There are two questions around tax impact of moving from WA to CA, for which there does not seem to be a clear answer (i.e. after extensive Googling)
1. Tax hit on Roth conversion: if they convert (deductible) Traditional IRA to Roth IRA in March in WA, and they move to CA in October of the same year, will they have to pay CA state tax for converted traditional IRA?
2. Capital gains tax on selling the WA home: should they wait until the completion of the WA house sale before moving to CA, so that they don't pay CA state tax on the home sale capital gains?
Would love to hear relevant experience and insights, thank you!
