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Finishing residency financial question

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  • Finishing residency financial question

    Finishing my residency in a couple of months and have a few finance questions

     

    1. I'm moving to a different state to practice as an attending, so for the year of 2017 how does that work with state taxes? Also how much in moving expenses can I deduct on my taxes?

    2. I have about 40K in a 403B through the hospital, should I roll that over or keep it? the portfolio it is in and is managed well and haven't had any problems

  • #2
    Hey, there

    1. The deduction applies if there is a reasonable distance between your old job and new home address (50 miles I believe). I use TurboTax and it walked me thru. You can deduct transportation cost of your stuff to a new place and storage for 30 days.

    2. Have you shopped around? What are the cost associated? While it may be less hassle to just keep it where it is, the convenience may come with a premium.

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    • #3
      Make sure you have disability insurance, esp if you're moving to CA or FL etc..

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      • #4
        What you earn in state 1 is taxed there.  Same for state 2

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        • #5




           

          2. I have about 40K in a 403B through the hospital, should I roll that over or keep it? the portfolio it is in and is managed well and haven’t had any problems
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          Run the numbers on what it would cost you to roll and covert it to a ROTH.  You will be in the lowest tax bracket due to being a resident for half a year that you will be in for a long time most likely.  It won't be cheap given you have 40k in it but you'll only have the opportunity to do it at that tax rate this year.  If you won't want to pay for a ROTH conversion make sure NOT to roll it over.  You don't want an individual IRA to screw up future back door ROTH options.

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