I currently reside and work in KY, which has a 5% state income tax. I will receive a mandatory 457(f) distribution (tax-exempt employer contributions not previously taxed) in 2020. I am considering moving residency to TN, which has no state income tax, and ultimately retiring there (although after the distribution date).
If I change residency (with all that is required) I know my regular wages will continue to be taxed in KY under a non-resident return. Can I exclude the 457(f) distribution from KY taxes and claim that as a TN “wage” for state income tax purposes?
