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Strategies & Market Trends : Dividend investing for retirement

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To: Steve Felix who wrote (6074)	10/12/2010 10:48:18 PM
From: E_K_S	Read Replies (1) of 34328

Hi Steve - How do the return numbers look after paying the Federal & State income taxes due upon withdrawals from the IRA? This begins to make a difference especially in a high tax state like California (almost 10% State Tax not including Federal income taxes). One option I am looking at is to move to a no income tax State at age 62 1/2 when I plan to withdrawal from my IRA. I might even look at living 6 months and one day in a no income tax State and then spend the rest of my time in a 2nd home as a non resident in some other state (Hawaii sounds nice). When you begin to look at the numbers just for the State taxes it begins to be a significant amount. Of course there are many other factors that dictate where one wants to live including family, friends and even health care costs and hospital locations. I think when I ran the preliminary numbers just for my own IRA, I would save over $100K in State taxes if I lived in a no income tax state at age 62 1/2. This strategy becomes moot if the no income tax state begins to tax income or you die. EKS

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