worked in NH for 26 years, live in kansas now

I have about a 250,000 lump sum option i can take from the job i had in NH which has no state tax. 

if i take that lump sum while living in kansas, will kansas take state tax, even though i never worked in this state? 

or is it time for me to move to another tax free state? 

Your question is probably beyond the scope of this board.  I suggest you contact a local tax advisor.

Retirement distributions (early or normal) are "retirement income" and are taxed by your state of residence at the time of the distribution. 

On 5/10/2021 at 11:07 AM, ratherbereading said:

Retirement distributions (early or normal) are "retirement income" and are taxed by your state of residence at the time of the distribution. 

 

thank you very much

23 hours ago, boomo99 said:

thank you very much

Welcome! 

Question - seems like there may have been litigation on this... suppose you earned the income and made contributions to the plan while working in a state that has an income tax. Then when you retire, you move to a state that has no income tax (like NH in the example above). Can your state of residence while working/accruing the pension attempt to tax the retirement income you receive while now living in NH?

In 1996, a federal law was enacted that basically stated that only your state of residence at the time of your retirement plan distribution can tax that distribution; as a result, the state where you previously worked while accruing your benefits or contributions could not tax them. (There is an exception for certain nonqualified plans that are neither excess benefit plans nor are paid out over life.) Prior to enactment, there had been much litigation. There is still occasional litigation, but that usually concerns whether the recipient actually changed residence.

Thanks.

That 1996 statute (amended in 2006) is 4 United States Code § 114.

http://uscode.house.gov/view.xhtml?req=(title:4%20section:114%20edition:prelim)%20OR%20(granuleid:USC-prelim-title4-section114)&f=treesort&edition=prelim&num=0&jumpTo=true

Thanks Peter.