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New Member
posted Jun 6, 2019 6:17:25 AM

I work in Alabama, but live in Tennessee, in 2017 I cashed out my 401k. Is that money taxable by Alabama as well as federal?

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New Member
Jun 6, 2019 6:17:27 AM

Your 401(k) distribution would be taxable in your state of residence, Tennessee. 

However, since Tennessee does not have a state income tax, the distribution is only taxable on your Federal return.

1 Replies
New Member
Jun 6, 2019 6:17:27 AM

Your 401(k) distribution would be taxable in your state of residence, Tennessee. 

However, since Tennessee does not have a state income tax, the distribution is only taxable on your Federal return.