I just moved to Maryland and closed out my 401k but now I have to pay Maryland state tax on that money, WHY??

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You owe MD tax because pension payments are "sourced" to the state where you live when received.

As an example, if you lived in MD and moved to FL, the amount would have been state tax free because it would have been sourced to FL after the move.

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You owe MD tax because pension payments are "sourced" to the state where you live when received.

As an example, if you lived in MD and moved to FL, the amount would have been state tax free because it would have been sourced to FL after the move.

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