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Are state taxes also deferred in a 401k plan? If so, can I avoid paying state taxes by moving tax free state?


For instance, when I retire can I avoid paying state taxes on my 401k distributions by moving to Florida, which does not have state taxes.

Yes. You contributions to 401(k) are pre-tax, so you are not deferring state taxes, you are paying out of pre-tax income.

If you move to Florida (or in my case Washington), you pay taxes in the state you reside in when you start withdrawing from your 401(k) at your retirement age.

Note that if you withdraw earlier you will pay a 10% penalty
Yes, 401 K contributions are exempt from state income taxes is most states. There are several States that don't have a state income tax and then there is Penna. which I know does not exempt pension contributions from the annual state tax.
I do also know that Penna. does not tax retirement distributions after you start taking distributions
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