Tax ? for Retirees who have moved.

[G-Man]

Before retiring, I'm sure many had some pre-taxed investments like a 401K for example.  My understanding is that you are taxed upon taking the money out after retirement.  Now, since you earned that pre-taxed where you used to live, to you have to pay them back now that you are taking the money out, or, do you only pay the taxes where you live now?

Thanks.

[3fan4life]

Not a tax expert but I have stayed at a Holiday Inn Express.

My understanding is that 401k withdrawals are considered income.

And would be taxed by where you were living when you withdrew it.

That's another reason that people retire and move to Florida.

No state income tax.

[semo97]

If you need all of it they are going to take a big bite out of it, depends on state. I would talk to pro about it you, need to protect some of it.

[Jess from VA]

Except I seem to remember a couple states like NY (or maybe only NY) decided to pass laws trying to source-tax retirement benefits (and maybe 401Ks created there), even if you moved out of state.

From the web:
Taxes on Retirement Income: New York gives every resident who is age 59.5 or older a break on taxes against retirement income from pensions and/or retirement account distributions. The first $20,000 of retirement income is exempt from tax. ... This extra exemption is limited to seniors whose income is less than $86,000.

Married couples get a double exemption, with each eligible for the $20,000 exclusion for a total of $40,000.

https://nyretirementnews.com/taxes-after-retirement/

We have a tax man member, but he does not live in NY state.

[Oss]

Gary
Your wife will never retire, she likes helping people too much
and you will never get below the number needed to escape taxes, nor will I
So dont worry, just live your best  life and pay the man from the government