IRA in California but a Texas resident
I’m retired in TX and transferred my TX Company pension to an investment company in CA this year. I visit CA because my children, home and joint checking accounts are in California. When I retired, I gave my old company the California address that’s why the pension was sent in CA and I opened a traditional IRA in CA.
My question is, would I be able to convert my IRA to Roth which is in CA and not pay taxes to the State of California?
Permalink Submitted by Alan Spross on Fri, 2010-08-27 20:39
It does not matter where you opened the IRA account, but you appear to have enough elements remaining of CA residency, that CA could seek to tax you on all your income, not just the conversion. Not sure what you meant by “home in CA”, but you should change key addresses to TX and your checking account, drivers license etc before converting. Note that converting this year and deferring the income to 2011 and 2012 will not help if CA determines that you were a resident at time of conversion.
And you know that CA is desperate for tax revenue!