Posted by Lead:During the COVID-19 epidemic, the U.S. Congress launched an economic stimulus package of up to 2 trillion US dollars, and began to throw money directly.However, "the wool will eventually come out of the sheep", and the benefits now "obtained" may eventually be adjusted through tax policy, so that each of us taxpayers will collectively pay the bill in the future.
And for the "Early retirement"The people who make financial planning may have to accept it.Tax rates may be higher in the futureOf this situation.In particular, the retired group holding 401(k) or IRA accounts will face the situation of "a wallet that has taken decades to grow, and finally a share of the pie by governments at all levels in the form of "tax collection"."
However, if you choose to retire immediately in the following 9 states in the United States, no state tax will be levied on withdrawals from this type of retirement account.
9 states that currently do not receive state taxes
When we retire, no matter what retirement accounts are withdrawn, such as 401(k), 403(b), 457, Pension, IRAs, etc., financial institutions will send us a 1099 form at the end of the year, and the money will be counted. As personal income for the year.
For the following 9 states, our retirement income is exempt from state taxes.The 9 states are:Alaska, Florida, Nevada, New Hampshire, Tennessee, Texas, Washington, Wyoming.The figure below is a specific distribution map drawn by the American Life Insurance Guide©️.
In addition, according to public news, Tennessee and New Hampshire will also phase out dividend and dividend taxes in 2021 and 2025.
All this looks really good, and I couldn't help but start to imagine whether in the future we should move to a place that does not charge state taxes on retirement account income to live and provide for the elderly.
However, is this really reliable?
Is it a good thing to be exempt from state income taxes?
Retirement accounts are exempt from state tax, which is good to enjoy, but it does not mean that the state government is "outrageous". All "benefits" are costly.
Public expenditure requires financial support. These tax-exempt states usually add their fiscal revenue to other tax items such as consumption tax and land tax.such asIllinois, which has no retirement income tax, is one of the states with the highest consumption and real estate taxes in the United States.
In the northeastern state of New Hampshire, there is no state retirement income tax, nor even a state consumption tax. The state government’s fiscal source naturally comes from land taxes.As you can imagine,New Hampshire has become the state with the highest land tax in the United States.
Other states that reduce or exempt retirement income taxes may not be so convenient for the elderly, such as community middle schools for the elderly or underdeveloped public transportation.
The key: timely adjustment of planning according to laws and regulations
In the final analysis, every citizen is doing "business" with the government company.In general, people exchange taxes for basic services provided by the government.The government has the right to change the rules of the game at any time, and the rules are indeed changing at any time.So, in this dynamic process,The long-term game between the people and the government will ultimately determine the quality of our living environment.
During the presidency of successive presidents, various policies and regulations of the U.S. government will be revised to varying degrees, especially in the past few years, the feelings of the Chinese community are particularly obvious.Therefore, since everything is a development and change situation, even if the tax-free state announces changes in the policies and regulations of "tax-free" in the future, it will not be a surprise to us.
And with the impact of the new crown pneumonia epidemic in the United States, Congress has successively introduced large-scale economic stimulus policies-"Wool will eventually come out of the sheep." The benefits that are now "enjoyed" will eventually be paid collectively by every taxpayer in the future. Judging from the status quo, compared to New York’s 8.875% consumption tax, the 2020 consumption tax in some parts of California has alreadyIt has generally risen to more than 10.25%.
Therefore, when it comes to planning retirement income, "Do too much, it is better to do well; to do well, it is better to do well. "
Choose retirement products that do not have follow-up tax problems. At the beginning of this retirement plan, we should make reasonable arrangements to truly protect our retirement pockets.In the personal supplementary retirement income market, it is the most common one, which has great potential for value-added, and also provides tax exemption.1Among the products withdrawn,Roth account和Cash value life insurance account, Has become the only two choices.
In the previous popular science column, the "How to use life insurance to increase your retirement income?", the American Life Insurance Guide©️ gives a detailed introduction. In actual retirement planning, we can discuss with professionalInsurance plannerOr family financial consultants can conduct in-depth communication together. This process can help us better understand the status quo of the retirement market and product characteristics, help us make correct judgments, and achieve the goal of achieving early retirement with half the effort. (End of full text)
(>>>Recommended reading:Have to pay back the old-age pension?A list of 13 U.S. states that collect taxes on pensions (2021 version)）
(postscript:After writing this article, the editor also silently logged in to the asset management account to take a look, and increased the deposit of Roth 401(k) account by 6 percentage points. At the same time, it was used forSupplementary retirement incomeIn his policy account, he planned to deposit an additional premium. )
1. This article does not constitute the American Life Insurance Guide and the author's investment and financial advice, and suggestions on related strategic plans.Before taking any action on any information contained in this article, please consult your attorney or understand with the assistance of professional insurance personnel.For further instructions on the cash value of the tax-free withdrawal policy, please follow the official English information of the IRS and insurance companies. For more auxiliary information, you can visit the column "What tax exemption for life insurance" we provide.
