Taxpayer took out $450k from his 401k to purchase a house in Nevada. Problem is that he still lived in Ohio when he took the distribution and deposited the funds in his bank account in Ohio. (About 2 months before he moved to Nevada). Taxes due for Ohio plus City plus School District are substantial. Are we stuck or anybody any suggestion how to avoid paying the State and City tax. All of the distribution of the 401k was used to buy the house in NV. Would there be any exception reporting the income to the state in a case like this. Better planning would have avoided all this of course, but here we are.