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bgauth67
New Member

Does a retirement distribution get taxed if I move to a state that has a state tax?

I receive a monthly distribution from a retirement account - 1099R.  My state of origin did not have a state tax.  Do I need to have state taxes withdrawn if I move to a state that has state taxes?

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IsabellaG
Expert Alumni

Does a retirement distribution get taxed if I move to a state that has a state tax?

It depends on which state. States vary with their treatment of retirement income. Some offer a retirement income exclusion for at least some part of your distribution. See retirement income here. You can respond with the state to which  you are moving and I can give you more information.

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7 Replies
IsabellaG
Expert Alumni

Does a retirement distribution get taxed if I move to a state that has a state tax?

It depends on which state. States vary with their treatment of retirement income. Some offer a retirement income exclusion for at least some part of your distribution. See retirement income here. You can respond with the state to which  you are moving and I can give you more information.

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bgauth67
New Member

Does a retirement distribution get taxed if I move to a state that has a state tax?

Thank you.  It would moving from NH to SC.  The retirement account was earned in NH but taking monthly distributions in SC
IsabellaG
Expert Alumni

Does a retirement distribution get taxed if I move to a state that has a state tax?

In SC, an individual who is UNDER age 65 may claim a retirement deduction up to $3,000 of qualified retirement
income from his or her own plan.An individual who is age 65 OR OLDER may claim a retirement deduction up to $10,000 of qualified retirement income from his or her own plan. Social Security isn't taxable in SC.

You might also want to do an internet search on the benefits of retiring to SC.
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bgauth67
New Member

Does a retirement distribution get taxed if I move to a state that has a state tax?

He's under 65.  So I should probably have him notify the NH Retirement admin so she can add the SC tax to his distribution?
IsabellaG
Expert Alumni

Does a retirement distribution get taxed if I move to a state that has a state tax?

Yes, if you will be moving at around the same time he starts collecting his retirement distributions.
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bgauth67
New Member

Does a retirement distribution get taxed if I move to a state that has a state tax?

Perfect - thank you!
IsabellaG
Expert Alumni

Does a retirement distribution get taxed if I move to a state that has a state tax?

You're welcome!
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