Timothy Sumer

States that don't tax your pension or Social Security: Simply take all the states wiht no state income tax and then add Alabama, Illinois, Mississippi and Pennsylvania. Yes, you heard that right, Illinois is one of the few states that leave your pension AND Social Security alone! Oh, don't get me wrong, they make up for it in other ways but in terms of income from retirement accounts Illinois is going to be hard to beat. ================================= GET ALL MY LATEST BLOGPOSTS: If you like what you see, a thumbs up helps A LOT. It tells YouTube that people are engaged and so the Youtube algorithm will show the vide to others who may be interested in the content. So, give me a thumbs up, please! Don't forget to SUBSCRIBE by clicking here: Contact me: Josh@heritagewealthplanning.com GET MY BOOKS: Both are FREE to Kindle Unlimited Subscribers! The Tax Bomb In Your Retirement Accounts: How The Roth IRA Can Help You Avoid It Strategic Money Plan

While there are numerous benefits to moving to a no income tax state, there are also dozens of considerations. Today, we’ll discuss the backdoor Roth IRA tax savings from relocating to an income tax-free state. Back-door kind of has some negative connotations. While it can sound shady, it is completely legal when correctly executed, and can be one of the more effective strategies for high-net-worth individuals when saving for retirement. Here’s how it works: you contribute to a traditional IRA, even though you may be phased out of the deduction, then you convert the monies over to a Roth IRA. Since you are living in a state with no income tax, you wouldn’t have to pay taxes on this conversion, leading to bigger tax savings than one that would tax you. Be mindful of when, and how you go about implementing a backdoor Roth IRA, such as: - Will my tax rate be lower or higher in the future? - Will our country’s tax rates be lower or higher? - When do I plan on withdrawing t