Hello. I have a question in regards to STATE income taxes when converting a 403b plan to a ROTH IRA. Below is my situation:
I currently work and reside in TEXAS (no state income tax). However, I am moving to South Carolina in May, and will live and work there permanently (7% state income tax).
So, I will only be living in Texas for about 2-3 more months. I currently have about $30,000 in a 403b. Ideally, I would like to convert the entire amount to a ROTH IRA when I switch jobs and move. Yes, I am aware I will have to pay federal taxes on this $30k. However, if I do the CONVERSION NOW (March 2018), will I have to pay state income taxes? I would still be a permanent resident of TEXAS when I do the conversion. HOWEVER, next year (2019) when I file my federal income return, I will have a permanent address in SC, and no longer in TX.
So, will I ALSO have to pay state taxes on the conversion?
Thank you! Any feedback is appreciated!
I currently work and reside in TEXAS (no state income tax). However, I am moving to South Carolina in May, and will live and work there permanently (7% state income tax).
So, I will only be living in Texas for about 2-3 more months. I currently have about $30,000 in a 403b. Ideally, I would like to convert the entire amount to a ROTH IRA when I switch jobs and move. Yes, I am aware I will have to pay federal taxes on this $30k. However, if I do the CONVERSION NOW (March 2018), will I have to pay state income taxes? I would still be a permanent resident of TEXAS when I do the conversion. HOWEVER, next year (2019) when I file my federal income return, I will have a permanent address in SC, and no longer in TX.
So, will I ALSO have to pay state taxes on the conversion?
Thank you! Any feedback is appreciated!