If I retire to a state that taxes retirement distributions, is my basis exempt since I already paid PA state tax on 100% of contributions to my retirement account?

That would be true in Pennsylvania, but tell us the state so we could see if that state would honor the basis.

 

KY

Kentucky excludes the less of 100% of taxable retirement benefits or $31,110.  The exclusion is for each taxpayer.  Spouses calculate the exclusion separately.

 

The TaxBook page KY-3 states:

 

 

@shinnroy 

Still a large amount of income that is taxed by both states. ☹️