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They don't tax IRA withdrawals, either. You won't have to pay income taxes on any pension benefits you receive. Unfortunately, you won't be able to completely avoid paying income taxes.
States with no income tax. Retirement distributions from 401(k) plans or IRAs are considered income for tax purposes. Fortunately, there are several places with no state income tax: Alaska ...
The next-best states to live in as a retiree, at least in regard to income taxes, are the following four, because while they do sport income taxes, they do not tax retirement income: Illinois Iowa
401(k) and IRA distributions: Taxable. Ohio. The 2024 tax rates haven’t been published on its taxation website yet, but Ohio’s 2024–2025 budget removed a state income tax bracket and reduced ...
Here are 13 states that won't tax your Social Security, 401(k), individual retirement account (IRA), or pension income. A map of the U.S. overlaid with $100 bills. Image source: Getty Images.
Having multiple IRAs can be justified by several investment strategies. If you have a traditional IRA, funded by pre-tax dollars, and a Roth IRA, funded by after-tax dollars, you may have a ...