Early Withdrawal of 401k

[bettybee]

What is the name of your state (only U.S. law)? Colorado
From 2008-the first quarter of 2012 I lived and worked in Nevada (no state income tax). During this time, I contributed to my retirement 401(k). In April 2012, my husband and I moved to Colorado (state income tax). I have not been employed or earned income in the state of Colorado. In November 2012, my husband was laid off from his job. To help pay the bills and rent, I opted to do an early cash out of my entire 401(k). An automatic 20%, and 10% penalty was withheld. I did not withhold for Colorado. That being said, do I have to pay state taxes on my withdrawal considering not one penny was earned in this state?

 

[cbg]

It's not a question of where you were when the funds were set aside. It's a question of where you were when you received the distribution.

 

[tranquility]

I agree with cbg. Where the distribution will be taxed is on the state of residence.

 

[FlyingRon]

It matters NOT where you EARNED the money but where you lived when made the contributions, it is where you lived when you made the withdrawal.