State Taxation of Self-Directed IRA Distributions Causing Many Retiree To Consider Relocating, According to IRA Financial Group Survey
Miami, FL (PRWEB) July 27, 2013 -- IRA Financial Group, the leading provider of “checkbook control” self directed IRA LLC structures announces the results of its client survey conducted on the state tax treatment of self-directed IRA distributions. Based on the results from several hundred self-directed IA clients throughout the United States, over 67% of respondents stated that the state taxation of self-directed IRA distributions would have an impact on where they retire.
State income tax exclusions for private pension income are not as generous as those for Social Security and public pensions. According to Adam Bergman, in-house counsel with the IRA Financial Group, twelve states and the District of Columbia fully tax private pensions. Those states are: Arizona, California, Idaho, Indiana, Kansas, Massachusetts, Minnesota, Nebraska, North Dakota, Rhode Island, Vermont, and West Virginia.
On the other hand, according to Mr. Bergman, Alabama, Hawaii, and Illinois exempt nearly all retirement income. They exempt 100% of Social Security, military pensions, government pensions, and certain types of private pensions. Only Mississippi and Pennsylvania exempt all retirement income, including 401(k) and IRA distributions. “Hence if an individual residing in California would have to pay approximately 10% in state income tax on private pension income distributions, a significant amount to many retirees, “ stated Mr. Bergman. For example, in Illinois, most retirement income is exempt from taxation, including withdrawals from IRAs, 401(k)s, pensions and Social Security benefits. New York exempts from taxation the first $20,000 of retirement-plan withdrawals for taxpayers older than 59½.
The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.
IRA Financial Group is the market's leading provider of “checkbook control” self-directed IRA LLC retirement solutions. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate without custodian consent.
To learn more about the IRA Financial Group please visit our website at http://www.irafinancialgroup.com or call 800-472-0646.
Jaclyn Baily, IRA Financial Group, LLC, http://www.irafinancialgroup.com, 800-472-0646 9, [email protected]
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