Retirees looking to maximize their retirement income could look for states that don’t tax income from such sources like pensions, 401(k)s, and IRAs. The good news is, there are a dozen states that won’t tax money derived from those funds, according to Rocky Mengle at Kiplinger.com
Four are in the South, with Florida, Mississippi, Tennessee, and Texas giving retirees a break. However, of that group, Mississippi and Tennessee have some form of tax on earned income.
In New England, only New Hampshire excludes income from retiree savings funds. It does have a modest tax on interest and dividends.
In the middle of the country, South Dakota and Illinois refrain from taxing retirement savings, but Illinois does have a state income tax.
Those in the real West enjoy true tax breaks in Nevada and Wyoming. Alaska is another very Western state that doesn’t tax income from wherever it comes. On the West Coast, Washington provides the full range of tax breaks as well.
No matter your lifestyle preferences, you can find suitable places where you can derive the full benefit of your retirement income without having to worry about paying more taxes.
Council of Seniors Wants To Add To Your Income
Full Social Security benefits are vital for retirees. Council of Seniors urges Congress to act right away to pass The SAVE Benefits Act. We support this bill to recover the Social Security cost of living adjustment (COLA) you truly deserve. Recent COLAs have been thoroughly inadequate. Once this legislation passes, the $581 previously denied will be returned to seniors.
Let’s work together to make that happen. Please sign our petition today to show politicians just how important this bill is.
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