I've moved from WA to CA in 2014. I have a 401k account which I contributed to when I was in WA. I did a withdrawal from that 401k in 2015 and paid the federal penalty to IRS. Now I received a notice from California Tax Board saying I need to pay them a penalty too. Not even a penny of this 401k is earned and contributed in CA. It doesn't make sense to pay that penalty to CA and I'll protest the Board's statement. I was wondering if my case makes a sense to an expert too?
