Congratulations on your move to TX!
I have a question. A long time ago, I read that California levies a tax on pension benefits that people earned while residing in that state. Did that apply to public sector employees exclusively? (It scared the daylights out of me. Now, I won’t even visit CA.)
how does that work? are they intercepting everyone’s mail?
>>I have a question. A long time ago, I read that California levies a tax on pension benefits that people earned while residing in that state. Did that apply to public sector employees exclusively? (It scared the daylights out of me. Now, I won’t even visit CA.)<<
I am not getting the pension yet (I was a Cal State employee for about 15 years). There are so few pensions anymore that it might be a moot question. But I have never heard of such a thing and certainly was not taxed on my pension accruals while I was there.
I have heard tell of a “migration out tax” but I think that would be such an overreach that California would never be able to dig out from the problems it would cause.
Yep, CA’s treatment on stock options (ESOP) is also disgusting.
If you move “from” CA, and years later sell your options, CA taxes them because they vested in CA.
If you move “to” CA after fully vesting options in another state, CA taxes them because you sold them in CA.