I'm trying to estimate the taxes that I'll owe this coming April. I know about all the early withdrawal fees, etc. I also know that I'll need to pay income tax on the amount I withdrew.==========>>>>>>> If you elect to receive an in-hand distribution of your contributions,California state income tax withholding is optional. State tax, if withheld, is 2% of the taxable portion of the refund. If you elect a rollover, no state tax will be withheld. If you receive a payment before you reach age 59½ andyou do not roll it over, then in addition to the regularincome tax, you may have to pay an extra tax equal to
10 percent of the tax-deferred portion of the payment . No 10% excise tax prior to reaching age 59 ½. the IRS charges a penalty of additional tax on most early withdrawals from retirement plans. The taxable portion of your refund, as an Eligible Rollover Distribution (ERD) is subject to mandatory 20% Federal tax withholding unless the taxable portion of the refund is rolled over into an IRA or other eligible defined contribution plan. If you are under age 59 ½ at the time of the distribution, any taxable portion not rolled over may be subject to an early withdrawal penalty tax of 10% federal and 2 ½ % stateunless an exception applies, PLUS any income tax due on the distribution.
For more information on these exceptions, please contact the Franchise Tax Board.
Here's my question: since I lived in CA for 6 months and will have lived in CO for 6 months once the year's done, which state's income tax rate should I use to figure out what I'll owe? ==========>>>As a part year resident of CA AND CO, you need to pay tax on your CA source income to CA and also need to pay tax on your CO source income to CO. in my opinion, you need to pay tax on the CalPERS refund check to ca not to co though the you moved to co , you still received a tax bill from the state of California for the check from ca as your ca source income. It is not your co source income. I guess you need to contact CA/CO tax boards for more accurate info in deatil.
Does it matter that I withdrew the money and received the money in CO? ===========>>>>>I do not think so.
Do I need to calculate that income tax based on the number of months I lived in each state (so half at the CA income tax rate and half at the CO income tax rate)? CO's state income tax rate is about half CA's income tax rate.==========>>>>I do not think so; as a part year resident of ca/co, you need to pay tax only on your ca source income to ca on your refund check from ca.your refund check from ca is not your co source income so you do not need to report it to co.