ziggy29 wrote:I don't believe so. I think California was trying this for a while with pension income "earned" while working in California and paid to non-CA residents, but the feds smacked 'em down.
Mel Lindauer wrote:ziggy29 wrote:PA gets around this problem by taxing contributions made to qualified plans in the year they're made (they don't allow the tax deduction for the contribution to a retirement plan that's allowed on one's Federal tax return).
Avoiding State Tax on an IRA
Can taxpayers avoid California income tax on their IRAs by moving to a state that has no state income tax?
Yes, since 1995, by federal law (HR 394 signed by President Clinton Jan. 10, 1996), IRA distributions may not be taxed by a state where the taxpayer is not a resident.
Ron wrote:Hey Mel - you must be (or formerly) from PA?
I'm still here (and don't claim any IRA income on my state income tax )...
The advantage is that many years later, I pay no state/local tax on the gains I've made over the years ...
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