I’m moving. Which state will tax my Roth IRA conversion?

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Q. If I lived the majority of the year in State A, then moved to State B, to which state should I pay my Roth conversion tax? This would be a 403(b) converted to Roth IRA?
— Getting out

A. Congrats on your move to a new state.

It will all depend on what you moved.

“When a person is a resident of one state and moves to another state, establishing residency in that second state, the income earned during the year is taxed based on the date received.” said Michael Karu, a certified public accountant with Levine, Jacobs & Co. in Livingston.

In your example, the income is reported to the state in which you resided on the date of the conversion, Karu said.

“All of that year’s income gets allocated based on the date received,” he said. “IRA withdrawals and conversions follow that rule.”

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This story was originally published on Jan. 12, 2022.

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