State Income Tax Savings
State Income Tax Savings: Investors who live in states with high state income tax rates may find retirement saving to be especially valuable if they retire to a state with little or no income taxation on retirement income. For example, a worker placing $100 into a retirement plan may lower their state income taxes by $7 if they are in a 7% state income tax bracket (and defer Federal income taxes too). The money then generally accrues tax-free until withdrawn. If withdrawn after retiring in a state with no state income tax on retirement income the investor can get the benefit of investment while paying only the deferred Federal income taxes.
Biltmore Capital Advisors LLC is not a tax or accounting firm. Please consult your tax advisor to determine if these facts are relevant to your particular situation.