12 States That Do Not Tax Your Pensions and Retirement Accounts | Christy Capital Management скачать в хорошем качестве

12 States That Do Not Tax Your Pensions and Retirement Accounts | Christy Capital Management

In today’s video we’re gonna talk about the 12 states that won’t tax your retirement distributions or your pensions. Our goal is to bring you good financial planning information to help bring clarity to you and your retirement. One of the biggest line items in your budget that you need to work out in your retirement is paying taxes. If you could live in a state that does not tax your pension or distributions from 401(k) plans or IRA's, that would make the budget work out that much better. Let’s go over those states Now nine of the 12 states don’t tax retirement plan income simply because they don’t have any state income tax at all. Those states are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Washington, and Wyoming. Now the following three states, Illinois, Mississippi, and Pennsylvania have income taxes, but they don’t tax distributions from 401(k) plans, IRAs, or pensions. In Alabama and Hawaii, they don’t tax pensions, but they do tax distributions from 401(k) plans and IRAs. Now beyond this, there are 27 states that tax some but not all retirement or pension income. The limits are usually based on income levels. No, income tax alone is not everything. Some states don’t have an income tax, however, they tax property taxes and sales taxes a whole lot more. That can offset any income tax savings by costing you more in other taxes. Since our home office is based in Georgia, we’re very familiar with how Georgia taxes pension incomes. So Georgia does have income taxes which means, by in large, the property taxes and the sales taxes are more reasonable. However, for anyone aged 62 to 64, they exclude $35,000 per person of pension income or retirement account distributions. For someone 65 years or older, the exclusion is $65,000 per person and that applies to all income from retirement accounts or pensions. This is the sweet spot where sales taxes and property taxes are on the more reasonable end because the state does have an income tax, however, they’re just not taxing people that have pensions over those ages. I know since there are 27 states that have these limitations, we can’t go into detail on each one of them in a video like this. --- The main takeaway of this video is to plan for taxes in your retirement. Whether you move to a state that has better taxes or not, you still can plan for taxes. We will all be subject to Federal Taxes, so planning is key no matter what state you live in. We have lots of videos on Roth conversions. That is a way to plan for taxes. We have videos on charitable giving to take advantage of the tax code. That is a way to plan for taxes. And now this video of thinking about where you want to live and how it would affect your taxes. The main key is to plan for taxes. Most financial plans fail, not for lack of investment returns, but for lack of planning. If you want help in planning for your retirement, please go to christycapital.com. Click on the button to talk with an advisor and give us your information so that we can give you a call. Or you can call us directly at the number listed below. Make sure you do some research on the state that you’re living in or the state that you’re planning on retiring in. If you want help putting together a full financial plan, please reach out to us. I'm Mel Stubbs, thanks for watching. The information provided is not intended as tax or legal advice. Figures shown are for illustrative purposes only furthermore, the information nor the illustrations provided may not be used to avoid any tax penalties. This content represents the general views of Christy Capital Management and should not be regarded as personalized investment advice Nothing herein is intended to be a recommendation. The opinions expressed are subject to change without notice. Retirement Benefits Institute, Inc., and a portion of its contents merged with Christy Capital Management Inc. Brandon Christy, former President of Retirement Benefits Institute, is also the current President of Christy Capital Management, Inc, a registered investment adviser.