For your 2019 year, when reading the State of Virginia requirements, since both of you moved out of the stat to become a resident of another state, you will be required to file as Part Year Residents.
A person who moves into Virginia during the year with the intent of becoming a resident, or a person who moves out of Virginia during the year to become a resident of another state, is a part-year resident for income tax purposes. See the State of Virginia Residency Status for more information.
Next year, if you both remain residence of the State of Florida, you would owe no taxes to the State of Virginia.
For your NUA, triggering events are death, disability, attainment of age 59½, or separation from service. If you use the NUA strategy before you reach age 59½ or have separated from service before reaching age 55, and didn’t meet any other IRS exceptions, you may be subject to a 10% premature distribution penalty tax on the cost basis.
For more information on the exclusions from the early withdrawal of your 401K, please see IRS Publication 575.
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