A federal law signed in 1996 prevents states from taxing IRA distributions taken by a former resident who is now living in another state. This law relates to pensions and some types of deferred compensation as well as IRAs.

Therefore, you might want to consider moving to a low-tax state when it’s time to begin IRA withdrawals or if you plan to convert to a Roth IRA (a taxable event). That’s especially true if you live in a high-tax state.

The key issue: where do you really live, at the time you withdraw money from an IRA or convert to a Roth IRA?

Some people think that it’s a question of where you spend the most time: they assume that someone who spends 180 days a year in a high-tax state and 185 days in a low-tax state is a resident of the low-tax state.

That’s not the case because many factors have to be considered. For example, if you move to a low-tax state but keep your driver’s license, vehicle registrations, voter’s registration, and bank accounts in your old high-tax state, the latter state may claim you as a resident and come after you for taxes.

That goes for all of your income taxes, not just IRA-related taxes, and possibly estate tax. Therefore, if you relocate