I'm sure dmerz can fully clarify, but I'll poke in anyhow.
IF you called AZ and asked again you would likely get a different answer (if you get a different person). But if you do call again, make sure you let them know you've lived in SD since 2020.
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Even the AZRS webpage indicates it is not AZ taxable if you are living in another state when you get those funds.
"Retirees living in other states are not required to pay Arizona state tax and the ASRS cannot withhold for any other state’s income tax liability."
Very Bottom of page at:
Tax Information | Arizona State Retirement System (azasrs.gov)
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
