Do I need to allocate any portion of my 401k withdrawal to Arizona where I lived for 2 months (January and February) but withdrew the funds after moving to Texas.

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No, if the withdrawal took place after you moved away from AZ, then you do not need to allocate a portion of it to that state.

If you had been receiving monthly payments from your 401k, then you would allocate two months of payments to AZ.

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