In thirteen US states, retirement dollars including pensions, IRAs, and 401(k) distributions are exempt from state income tax. Nine states including Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, and New Hampshire have no income tax at all, while four states - Illinois, Iowa, Mississippi, and Pennsylvania - provide tax breaks for retirees. Political shifts suggest more states may abandon taxing social security benefits, prompted by desire to retain retirees' spending power, but revenue-strapped states may devise new methods for raising funds.
After decades of punching the clock, stuffing your 401(k), and counting down to your golden years, the last thing you want is your state taking another slice of your pie. The good news? In 13 states, your retirement dollars get to stay in your pocket. No...
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