Federal Retirement
The federal retirement planning process involves you ensuring that the money you have earned works to your highest advantage. This financial planning process requires looking at all aspects impacting your federal retirement
from how much money is needed in retirement to where will you live. Once you retire, deciding on where to live in retirement is a big factor in the quality of life that live in retirement. Finding ways to save money is important and the taxes that you pay in retirement is going to be important to you in ways difficult to overstate. Let’s look at some States that exempt taxes on federal retirement annuities. States are prohibited from giving more favorable tax considerations to local and state pensions than they give to federal pensions.
Tax Exempt States:
• Alabama
• Kansas
• Hawaii
• Illinois
• Louisiana
• Massachusetts
• Michigan
• Mississippi
• New York
• Pennsylvania
States Without Personal Incomes Taxes:
• Alaska
• Florida
• Nevada
• New Hampshire
• South Dakota
• Tennessee
• Texas
• Washington
• Wyoming
Many other states are joining the ranks of states that give tax considerations to persons receiving Federal Annuities, Social Security and Railroad Retirement. Visit the website of the state or jurisdiction you wish to reside in to check their tax treatment of annuities and other retirement income sources.
P. S. Always Remember to Share What You Know.
