I made pretax 403b contributions while living in NC 1/24-7/24. Moved to PA 7/24, rolled 403b to IRA, converted to Roth IRA 9/24. Do I pay NC taxes on the Roth conversion?

The pretax contributions were actually an employer contribution but I could not fit that into the main question. I believe since the conversion step occurred while living in PA that the conversion amount should not be included as NC income. This is of consequence because PA does not tax Roth conversions but NC does if the income is allocable to NC. Thank you.

1001

Expert Alumni

Feb 25, 2025 7:51:50 AM

No, the tax (if any) is owed to the state where you were living at the time of the conversion (PA).

You may have to do some adjustment of NC income while you are in the NC interview.

As a follow-up, you may want to see the background in this PA article.

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I made pretax 403b contributions while living in NC 1/24-7/24. Moved to PA 7/24, rolled 403b to IRA, converted to Roth IRA 9/24. Do I pay NC taxes on the Roth conversion?