That’s been discussed in California. They had some absurd idea about taxing people who moved out of state…I don’t recall all the particulars but it should have been called the California remembrance tax. Freakin’ commies.
When I left Pacific Bell in Nov 1991, the company paid out my 401k on exit. I did a direct transfer to another 401k to avoid having a "distribution" that was taxable. Pacific Bell was dumping huge numbers of employees at the time and the state of CA sent out a notice that any retirement income earned inside CA would be taxable by CA upon distribution no matter where you moved. Such BS. You've never seen so many middle fingers raised by employees and their legal counsel in the direction of CA government.