Don’t Overlook State Tax Impact in Retirement Plans

All of those Florida “snowbirds” have the right idea, according to attorney Bruce Steiner. With state taxes rising, planning to minimize states taxes has become a critical part of the retirement planning process, Mr. Steiner notes in a recent article in CCH’s Journal of Retirement Planning. In 1996, Congress opened up the way for retirees to reduce their retirement tax burdens by moving to a state with a lower (or in some cases nonexistent) income tax. Steiner notes that research up front for clients’ retirement years could reduce or eliminate the state tax bite on retirement savings. He also points that the planning should also extend to the estate planning side as beneficiaries of a qualified plan or IRA could see their taxes reduced through the use of a trust as the beneficiary of the qualified plan or IRA.

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This story is from the CCH’s monthly Focus on Tax newsletter, which provides advise and guidance on federal and state tax issues for tax and accounting professionals.

Read this article from CCH’s Journal of Taxation of Financial Products.

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Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

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