Roth conversions mid year and moving to a new state

[stahleyp]

So, it's looking pretty likely that we might be moving to PA. As some of you guys may know, PA doesn't charge state taxes on Roth conversions.

 

So, if we move from OH to PA in the middle of next year and I do a roth conversion after the move, how would the state taxes come into play? I'm thinking it'll either be prorated through the whole year or whatever income earned in each state would be taxed respectively. Any insight?

[Gregmal]

I have no advice here but just cant help but wonder what these states do for you to deserve taking a tax here?

[Castanza]

Are you talking about a 401k?

[Mephistopheles]

My sister did a roth conversion in PA, but had lived there for the full year. Earned the income in NJ where she got the tax deduction. So that money was never taxed, on the way in or way out. I looked at it extensively to make sure nothing was owed anywhere, and it wasn't. I didn't see any rules about moving mid year, so given it's not specified I would just go ahead and convert in PA, and not pro-rate it at all. I don't see how OH can have claim on it because technically the "income" (conversion) was earned in PA.

[stahleyp]

Hey guys, yeah this is from a 401k. Our income is going to be quite a bit higher in 2022 so I'm thinking about converting in 2021 since we'll have a lower income that year.

 

My issue is that (I believe) most of the state income taxes read it off of your 1040 which includes the conversion.