Have You Started Receiving Your Retirement Income? Know This:
You’ve probably worked really hard your entire life, and now you’re retired, or will soon. Unfortunately, there’s a pretty solid chance that Uncle Sam will take a cut of your 401(k), traditional IRA, or pension income. But what about in YOUR own state?
Will it take a chunk out of your retirement income as well? Most states tax at least a small portion of your retirement income. Not to mention the states that tax your Social Security benefits.
Your state might be offering SOME tax breaks, but those breaks usually have a few limitations based on your age and income. However, a few states are entirely free from the most common types of retirement income from taxation: 401(k)s, IRAs, and pensions.
That’s a massive plus for seniors living in those states. So if you’re looking for a location where your retirement funds will go a long way, you should think about moving to a state that won’t tax your retirement income.
Of course, taxes shouldn’t be the only factor to consider when you decide where to retire. But moving to a state that doesn’t have an income tax could leave you with more money to cover your other costs.
If living in a no-income-tax state sounds appealing, which city would be the best to retire to in each of these no-tax states? Let’s look at 7 states where you don’t have to pay tax on your 401(k), IRA, or pension income.
…If you live or plan to move to one of these states, you can stretch your retirement savings more than you think.