rocklkw86
New Member

I work in Alabama, but live in Tennessee, in 2017 I cashed out my 401k. Is that money taxable by Alabama as well as federal?

 
LisaBr
New Member

State tax filing

Your 401(k) distribution would be taxable in your state of residence, Tennessee. 

However, since Tennessee does not have a state income tax, the distribution is only taxable on your Federal return.

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