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Old 02-08-2018, 07:04 PM
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Join Date: Feb 2018
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Which state do I claim early distribution in?

Hi all,

I moved from GA to SC in September of 2017. I worked for my previous employer in GA for 7 years and I paid into my 401K while I worked and lived in GA. When I moved I took an early distribution. When the distribution was paid out it went down as being paid to me in SC (item 13 on my 1099-R says SC is the state no.) Do I claim this income for GA or SC?

Thank you



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Old 02-08-2018, 10:45 PM
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I moved from GA to SC in September of 2017. ]=====>>the you need to file your GA and SC returns as a part year resident with GA and part year resident with SC since you moved to SC form GA during the year of 2017. Basically as ssaid, since you were a resident of 2 different states of GA and SC during the tax year of 2017 (for example, you moved from GA state to SC), you'll normally file part-year returns in both states, assuming each state collects income tax and you had income in each state.

I worked for my previous employer in GA for 7 years and I paid into my 401K while I worked and lived in GA. When I moved I took an early distribution. When the distribution was paid out it went down as being paid to me in SC (item 13 on my 1099-R says SC is the state no.) Do I claim this income for GA or SC?===========>> The income is generated upon withdrawal, as a general principle in the US you cannot expected to pay retro-active taxes to the state where you lived when the 401K was funded; SO, after you moved to SC, you took the early d/b from your 401K as a PART resident of SC, then, since you changed your state of residence from GA to South Carolina and received the early distribution while a PART YEAR resident of South Carolina, then all of the distribution is attributed to (i.e. taxed by) South Carolina NOT by GA. Retirement distributions ,early or normal, are your "retirement income" and are taxed by your state of residence at the time of the distribution.



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