Inflation and soaring prices are making it really difficult to make ends meet for retirees. That is why they need to make the most of their Social Security retirement benefits and distributions.
Some retirees may want to move to a different State in retirement. Taxes could be another reason for moving to a new State if you were already thinking about it before getting Social Security benefits.
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8 STATES WITH NO INCOME TAX- INCLUDING SOCIAL SECURITY RETIREMENT BENEFITS
If you are in your late 50s or early sixties and you have not filed yet, learn about the 8 states with no income tax. In fact, they are Wyoming, Washington, Texas, Tennessee, South Dakota Nevada, Florida, and Alaska says AARP.
New Hampshire is not a bad option either because there is no tax on retirement distributions either. However, you may have to pay taxes for dividends and interest.
The good thing is that New Hampshire will get rid of this tax by 2025. So, you will not have to pay it for long if you get money from dividends or interest.
4 STATES WITH NO TAX ON PENSIONS, RETIREMENT DISTRIBUTIONS OR SOCIAL SECURITY
Illinois is a very good example because it will not tax distributions for most 401(k), IRA plans, Social Security, and most pensions. The thing is you will have to pay taxes on investments.
Mississippi is another States that does not tax Social Security benefits or retirement distributions. Iowa does not tax Social Security payments or savings plans for retirees if they are 55 years old or older. It has income tax though.
Another State that does not tax Social Security benefits is Pennsylvania. Retirement plans are not taxed either in this State. However, taxes are not the only things to take into account when moving to a new State.