State tax on Roth conversion - NY or NJ?

I don't. While I'm not an expert on NY tax law, a distribution of deferred compensation, such as a Traditional IRA, is generally considered source income of the state where you are a resident at the time of distribution, and therefore only taxable by that state.

Did New Jersey have different rules in past years that might affect the basis in your Trad. IRA at the state level, for example different maximum deductible amounts? If so, New Jersey might want you to re-state your basis as if you had been a resident all along, but again I'm not an expert in NJ tax law either.

-Mark Bole

A long time ago I found comments like that "nigh unbelievable." Now I find them all too easy to believe. :(

Mark Bole wrote in news:MYYOk.4903$ snipped-for-privacy@nlpi069.nbdc.sbc.com:

Thanks, Mark!

Mark and Dick are right on this. There is a federal statute (4 USC Sec. 114) that prohibits states from taxing certain retirement income of nonresidents on a source basis. Income from tax-qualified retirement plans such as traditional IRAs, including lump-sum distributions, can be taxed only by the taxpayer's state of residence at the time of the distribution.

Katie in San diego

Katie wrote in news: snipped-for-privacy@d10g2000pra.googlegroups.com:

Thanks, Katie, and Dick, Bill, and Mark as well! Now I have to wait until Citi Smith Barney effect my instructions and then sit down with my TaxAct to estimate the taxes due.