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

[bgauth67]

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  Do I need to have state taxes withdrawn if I move to a state that has state taxes?

[IsabellaG · Accepted solution]

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.

[bgauth67]

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

[IsabellaG]

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.

[bgauth67]

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]

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

[bgauth67]

Perfect - thank you!

[IsabellaG]

You're welcome!