What to Know About Taxes When Deciding What State to Retire In

By having a better understanding of your tax situation, you are more likely keep more of your hard-earned money, which can also mean you don’t have to rely as much on exuberant investment returns. 

Moving to another state in order to potentially save money in taxes can have a huge impact on your finances in retirement by allowing your money to go further, which means less stress on your income producing assets throughout a potential 20–30-year retirement. 

In this episode we discuss the various tax implications you’ll want to know when deciding where to enjoy your retirement years!

More specifically, I discuss:

• Some of the major tax differences between states
• How income taxes differ between states
• How different states tax different types of retirement income such as Social
• Security, IRA/401(k) distributions, pensions, and capital gains
• State tax nuances of Health Savings Accounts (HAS)
• State deductions, credits, income exemptions, and property tax exemptions
• Sales tax differences between states and localities
• Property tax considerations when making a move

Resources:

• Access Show Notes and Sign Up for the Retired·ish Newsletter HERE
• Free Retirement Jump Start Analysis for Ages 50+
• Ask Cameron A Question!

The key moments in this episode are: 00:00:00 - Importance of Estate Planning for Retirement Accounts 

00:02:13 - Complex Retirement and Tax Laws 

00:04:20 - Challenges of Passing Wealth Efficiently 

00:08:01 - Inheriting Retirement Accounts and Tax Implications 

00:13:00 - Strategies for Beneficiaries 

00:16:18 - Options for Spouse Beneficiaries 

00:19:27 - Charitable Considerations 

00:22:09 - Leaving Retirement Accounts to Trusts 

00:25:27 - Things to Avoid and Consider 

00:27:51 - Additional Guidance and Resources