The CARES Act allowed taxpayers to take up to $100,000 from an IRA in 2020 as a penalty-free coronavirus related distribution and recognizer the income in 2020 OR over three years beginning in 2020.

What if the individual moves out of CA before he three years is up? In this case, only the period where the person was a CA resident will be taxed by CA. Example: TP took $100k out in 2020 and moves to TX 7/1/2021. $33,333 will be taxed by CA in 2020 and $33,333 * 1/2 (year) = $16,667 will be taxed by CA in 2021. The remainder will have no state tax as TX is a non-tax state.

The same applies to TP moving into CA after 2020, in reverse.