Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Steve Felix who wrote (17925)	12/14/2013 2:26:51 PM
From: E_K_S	Respond to of 34328

OT - CA IRA CA did not tax my IRA contributions at the time the money was earned. CA follows all the Federal tax rules as far as I am aware of. There has been some argument by the State that their tax is/will be due to the State irrelevant of where your residence is when you withdrawal the funds and/or do a conversion because you earned the money in that State. This was litigated and found in favor of the non-resident. That is not to say that at some time the State law will change (ie laws can change). So for me, I decided to start my ROTH partial conversions early so I get ahead start on getting my IRA's converted before any changes are made to the CA State laws. I suspect many states will be looking at these IRA's and/or ROTH conversions as a source of revenues especially as the baby boomers begin to retire. So for now, CA does not tax IRA monies when contributions are made and earned but only at the time of withdrawals and/or ROTH conversions are done. You also must be a current resident at the time monies are withdrawn and/or ROTH conversions are made. EKS