IRA

MG60F · ‎March 27, 2022

I currently live in Florida where there is no State Income Tax. I plan to retire in California where there is State Income Tax. If I put funds earned in Florida into an IRA this year to save on Federal Taxes, when I receive a distribution from the IRA when I retire in California, will I need to pay State Income Tax then on the distribution as well as Federal?

xmasbaby0 · ‎March 27, 2022

If you live in CA and take money out of a retirement account, that distribution will be subject to the CA tax laws, no matter where you lived when you started the IRA. CA does not tax Social Security, but CA does tax certain kinds of retirement income from pensions and retirement accounts.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

ColeenD3 · ‎March 27, 2022

Yes. CA does tax IRA distributions.

Retirement account income, including withdrawals from a 401(k) or IRA, is considered taxable income in California. So is all pension income, whether from a government pension or a private employer pension.