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It may not affect you but many states do not consider IRA/401 accounts as qualified retirement plans and therefore tax the withdrawals. You may want to check in advance to avoid a nasty surprise.
Or consider investing in shelters to avoid those taxes.
Or consider investing in shelters to avoid those taxes.
In many cases one of the employment benefits offered is 401 matching of a certain amount so even if you prefer not to use tax deferred accounts you do it to get the benefit.
In many cases one of the employment benefits offered is 401 matching of a certain amount so even if you prefer not to use tax deferred accounts you do it to get the benefit.
'Tax deferred' still means that your getting taxed, and it has no further benefit to keep you rather income from being taxed.
Retirement Income Taxes: Retirement income is not taxed after age 59 1/2 if the person has reached retirement, based on years of service or age. Retired means meeting the requirements of a Pennsylvania eligible plan and separated from service by retiring. Eligible employer-sponsored retirement plans can, but do not necessarily, include employer-sponsored deferred compensation plans; 401(k) plans, thrift plans, thrift savings plans, and eligible welfare plans. Income not taxed includes Social Security benefits and Railroad Retirement benefits; commonly recognized pension, old age retirement benefits paid after becoming eligible to retire, and then retiring. It also includes United Mine Workers' pensions, military pensions, and civil service annuities.
Plus, most people are older when they retire and you just can't physically do a lot of things at 60 that you could at 30. When I was 30, I had a two story house with an above ground basement on a 1/2 acre with a fabulous garden I spent most of my free time in. Now, my knees hurt just thinking about it. I live in a one level condo with lots of pots and raised beds for gardening. A downtown condo may not be the best place to raise kids. But it can be a wonderful lifestyle after the kids leave.
Growing older brings changes. Sometimes you can adapt where you're planted, other times you need to be transplanted.
I SECOND THE MOTION. I MOVED MANY TIMES WHEN I WAS YOUNGER, BUT WHEN YOU'RE AROUND SIXTY,THINGS DO CHANGE,PHYSICALLY AND MENTALLY -AND YOU HAVE TO MAKE DECISIONS ACCORDINGLY...
Retirement Income Taxes: Retirement income is not taxed after age 59 1/2 if the person has reached retirement, based on years of service or age. Retired means meeting the requirements of a Pennsylvania eligible plan and separated from service by retiring. Eligible employer-sponsored retirement plans can, but do not necessarily, include employer-sponsored deferred compensation plans; 401(k) plans, thrift plans, thrift savings plans, and eligible welfare plans. Income not taxed includes Social Security benefits and Railroad Retirement benefits; commonly recognized pension, old age retirement benefits paid after becoming eligible to retire, and then retiring. It also includes United Mine Workers' pensions, military pensions, and civil service annuities.
PA's state income tax is a flat 3.07%
Yes, and the question was relating to the non-committal statement regarding 401's, but I did find clarification...
'Distributions from a retirement plan (including 401(k), 403(b) and SIMPLE plans) after age 59 ½ are not subject to PA Personal Income Tax.'
It was also interesting to find that PA taxes any employer matching contribution in the year it is made.
As to the comment about 'tax deferred' it should be noted that that is reference to federal income tax and that state tax treatment of those funds varies across the country. Sorry to confuse the issue but this is worth noting when looking at retirement locales.
why do people feel the need to move when they retire?
to move away when they retire. leave eveything they know. why didn't they move when they were younger. i guss i do not get it
I'm with you on that ( the bold part ). I made the big move a year ago at age 57. It no longer made any sense to wait another 8 years until retirement age. I discovered that my absolutely rational, practical list of reasons to wait was just fear and procrastination. I'm young and healthy now, but who knows what might transpire in 8 years. Having made many moves in my life I was very much aware that each one gets a little harder. I wish I would have made the move sooner....certainly not later. No point in waiting. Conquer your fear and procrastination and do it now.
why do people feel the need to move when they retire?
to move away when they retire. leave eveything they know. why didn't they move when they were younger. i guss i do not get it
I'm with you on that ( the bold part ). I made the big move a year ago at age 57. It no longer made any sense to wait another 8 years until retirement age. I discovered that my absolutely rational, practical list of reasons to wait was just fear and procrastination. I'm young and healthy now, but who knows what might transpire in 8 years. Having made many moves in my life I was very much aware that each one gets a little harder. I wish I would have made the move sooner....certainly not later. No point in waiting. Conquer your fear and procrastination and do it now.
blessings...Franco
tried to rep you , but I can't !!!
Still can't understand this system, but I owe you one
why do people feel the need to move when they retire?
to move away when they retire. leave eveything they know. why didn't they move when they were younger. i guss i do not get it
I'm with you on that ( the bold part ). I made the big move a year ago at age 57. It no longer made any sense to wait another 8 years until retirement age. I discovered that my absolutely rational, practical list of reasons to wait was just fear and procrastination. I'm young and healthy now, but who knows what might transpire in 8 years. Having made many moves in my life I was very much aware that each one gets a little harder. I wish I would have made the move sooner....certainly not later. No point in waiting. Conquer your fear and procrastination and do it now.
blessings...Franco
Outstanding perspective, and I agree with you.
I did it myself at 40, about 15 years ago. However, sometimes you have to deal with other issues causing you to make a subsequent move you hadn't anticipated. In my case, having a severely handicapped child still living with us as an adult caused us to have to make a second move we hadn't anticipated. This was done to provide her better care, such is life.
Lesson is, sometimes the retirement moves are for external reasons beyond our own personal goals.
We relocated after retirement because of expenses. Our kids are in California and our sibs, etc. are in NY. Some choice of places for us to live, huh? We just couldn't make ends meet if we moved to either place. It's nice here in Oregon and I don't regret being here but when the holidays roll around and traveling is a hassle, I do wonder what the heck we're doing up here.
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This Is So True
