Moving from WA to CA.
Does it matter if I contribute to my 401k in the beginning of the year when I am in WA or should I wait to be in CA to do that. Would I pay lower CA income taxes?
Your contribution is pre-tax. No matter where you contribute it will lower your taxable income. For California, your state tax will be pro-rata for the number of days you reside in California.
Can you explain this? So it doesn't matter whether I lived the first 6 months or the last 6 months fir example. Assuming my income is more in the first half?
The max if you are under 50 is $17,500 for 401(k) contribution a year. If you make $400k and contribute the max then your taxable income is $382,500. Of course you’ll have other deductions hopefully. Then California will take their share of your “taxable” income based on days in state. They’ve tried to change it so if you are there more than 30 days total a year you have to pay. But I don’t believe that has gone through. Honestly, if you are moving to CA the period of time in which you contributed to your 401(k) is the least of your concerns.
How much more comp did u negotiate to cover for ca state tax and high property tax ?
Zero. I'm moving to socal.