If I move to Nevada, are my California retirement benefits taxable?

June 6, 2003

Subject:  California Income Tax
From:  Bernard
Date:  Wed, 14 May 2003

I am a California state employee. If I retire and move to Nevada, must I still pay California income tax on my state retirement benefits? Thank you for your response.

Answer

Date:  2 Jun 2003

Hello Bernard,

Under federal law, California may not tax "qualified retirement income" received after 1995 by former California residents who move to another state. Qualified retirement income includes most state retirement arrangements, so your benefits should not be taxable if you move to Nevada. Be sure to eliminate all of your ties to California, including your bank accounts, and register to vote in Nevada to eliminate any potential issue of questions of residence.

Good luck!
Mike Gray

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