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Does Connecticuts Special Accrual rule mean I owe tax on all my 401K RMD payments even those after a mid January move?

Since I was a Connecticut Resident for the first half of January and Connecticut requires Special Accural of all income for part year residents, are 401K RMD's paid while a nonresident covered by the same federal law as retirement payments?

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Employee Tax Expert

Does Connecticuts Special Accrual rule mean I owe tax on all my 401K RMD payments even those after a mid January move?

Yes, the federal law applies to all retirement income- retirement income can only be taxed in your resident state at the time it was received, regardless of the source or where you worked.  This applies to the CT Part Year Allocation of income.

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Employee Tax Expert

Does Connecticuts Special Accrual rule mean I owe tax on all my 401K RMD payments even those after a mid January move?

Yes, the federal law applies to all retirement income- retirement income can only be taxed in your resident state at the time it was received, regardless of the source or where you worked.  This applies to the CT Part Year Allocation of income.