Are 409A distributions to non-residents subject to CA taxes? - Spidell

Are 409A distributions to non-residents subject to CA taxes?

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Message Board Are 409A distributions to non-residents subject to CA taxes?

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      Anonymous
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      <span style=”font-weight: 400;”>I am a California resident but will be moving to Denver Colorado by the end of the year 2020. Colorado will be my permanent state of residency.  I have a non-qualified Deferred Compensation Plan under 409A of the Internal Revenue code. When I selected the distribution period, I was told by the plan administrator that, if I selected a distribution period of no less than 10 years, California would not be entitled tax any of the distributions I receive when I am no longer a California resident. Since the distributions will commence in 2021 and will be paid over a 10-years, I would like to confirm the accuracy of my understanding.</span>

      <span style=”font-weight: 400;”>I have been unable to find any authority of my understanding. I would appreciate any help or guidance but anyone that might provide me with specific code section or letter ruling reference.</span>

      <span style=”font-weight: 400;”>Thank you!</span>

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