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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Steve Felix who wrote (17921)	12/14/2013 11:12:08 AM
From: Ditchdigger	Respond to of 34328

Yes, required minimum withdrawls from IRA's and IRA variable annuities minimum withdrawls. Plus. SS They had to pay state tax to Vermont on all of it and now they pay none to Florida. (expecting 12"-15" here tonight)

To: Steve Felix who wrote (17921)	12/14/2013 1:27:08 PM
From: E_K_S	Read Replies (2) \| Respond to of 34328

No State Tax on IRA's to ROTH conversions - If a resident of a "no income tax state": WA, FL, NV, TX , AK, S. Dakota & Wyoming I moved my residence to the State of NV two years ago as it is a No Income Tax State. One of the benefits is that when I do my IRA to Roth conversions, I pay only Federal taxes and no State Taxes. If I was a resident in the State of California the minimum State income tax rate would be 10% and higher as your income rises. For me, it's a big deal as my strategy is to do partial conversions from my IRA to Roth accounts over a 10 year period. I immediately save 10% of the amount converted for not having to pay CA State Taxes. I figure that over the period I will save as much as a $100K in State taxes. Even better, I no longer have to pay State Income taxes from all of my dividend income generated from my taxable account. As this is my sole source of income, that is a significant savings which goes to pay my monthly health care premiums. FWIW, I do maintain a vacation home in CA but spend most of my time in NV. Property taxes are capped in both states to a maximum 3% annual increase. Therefore, those taxes are limited and I am able to budget for that increase. As a bonus, I generate additional income from the NV property as I have converted the Duplex to a Tri-Plex and have very good tenants that take care of the property when I am not there. I have no problem paying my fair share in taxes but CA has one of the largest State income tax rates of all the 50 states. By moving to NV (a home located w/i walking distance to Lake Tahoe), I get an incredible quality of life with daily walks to the lake and the benefit of paying no State income taxes. Also, I get a lot more visitors wanting to come up to my lake property who all are welcomed when I am there. I bought my NV residence in November 2011 during the foreclosure crisis and completed my remodel in 2012. So far it has worked out great but the snow can be a problem at times. I do have a ready & healthy tenant that shovels all the snow for me. In the remodel I put in super efficient windows and sliding glass doors, installed a 97% high efficiency NG furnace, replaced the building's siding w/ insulated material and installed water efficient toilets and showers that cut the building's utility expense in half. Rents cover all the costs for both my properties with a bit left over to buy more dividend paying stocks. EKS