topic Re: Cash out 401k in State tax filing

Cash out 401k

Samjcollett — Fri, 30 Oct 2020 17:42:32 GMT

I had a 401k when I worked at a company in California. I quit my job in California and moved to start a new job in Utah. After a couple of months in Utah I decided to cash out the 401k. Since I cashed it out in Utah do I owe any taxes to California?

Re: Cash out 401k

Anonymous — Fri, 30 Oct 2020 18:57:29 GMT

you should not. CA did try to tax retirement distributions earned there but the distributions were made to taxpayers who were no longer CA residents. SCOTUS shot down the CA attempt. make sure that the trustee has your current address so the 1099R reflect it rather than your old CA address. A CA address could create problems.

Re: Cash out 401k

TomD8 — Fri, 30 Oct 2020 22:05:58 GMT

Public law 104-95 prohibits states from taxing the retirement income of non-residents. If you now are a resident of Utah, your 401K distribution is not taxable by California. But it definitely is taxable by Utah.