457 B Distibution & state taxes

[mjkaump]

I received a W2 from a 457B plan that was distributed in 2022 . The money in the 457B was from a job I had in Connecticut and left in 2018.  We moved from Connecticut and became residents of California in 2020.  My question is should we report the income from the 457B on our California taxes- (as our 401K income is also reported in California) or should we report the 457B income to the state of Connecticut since the money was sourced there? I think what is throwing me off is the W2 even though this is not considered earned income.  Everything I'm reading makes me think this is retirement income and I should report in the state I was residing as resident when I received the income.

[JosephS1]

Please clarify and expand upon your question.  The reason I ask this is you state you received a W-2 from the 457B plane when you should have received a 1099-R as the 457B is a retirement plan.

Since you are no longer a resident of CT and have not been for the last few years from your statement, you would include the income on your CA return and do not have to file a CT return provided no CT tax was withheld from the proceeds.

Please check the form number again as it should not be a W-2 but a 1099-R.

@mjkaump 

[mjkaump]

the form does not say W-2 but the OMB no 1545-0008 in upper right hand corner.  Box 15 says State/ California (my state of residence now).  Box 11 says nonqualified plans and has the amount of distribution.  Box 16 State wages also has the same amount.  Did not receive a 1099R

[TomD8]

@JosephS1 --

Distributions to an employee from a nonqualified plan or nongovernmental section 457(b) plan are reported in box 11 of Form W-2, not on a 1099-R.  See the instructions for Form W-2, Line 11, here:

https://www.irs.gov/instructions/iw2w3#en_US_2023_publink1000308350

[TomD8]

TurboTax has a help article on taxation of deferred compensation "non-qualified" plans:

https://turbotax.intuit.com/tax-tips/tax-payments/strategies-for-managing-your-tax-bill-on-deferred-...