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Aggravating_Foot_528 t1_jc8dk6s wrote

Places that tax 401k contributions don't tax them on the way back out. Basically makes them a state level Roth.

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ProfessorDerp22 t1_jc8ewd0 wrote

Sure, assuming you plan on staying and retiring in PA.

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Aggravating_Foot_528 t1_jc8hu70 wrote

There may be a way to prove that it was taxed going into a 401k by one state so that if you move to another that taxes it on its way out it may not be taxes. That's easy enough to figure out

Edit: I was wrong. You follow the tax laws of the state you are currently in. So you can be double taxed - taxes when put in in pa and when take out elsewhere if they tax that. But also you can avoid all state taxes - work/live in Ohio and don't pay state income tax on 401k contributions, then retire to PA and take them out tax free. https://www.bogleheads.org/forum/viewtopic.php?t=215167

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Hashtaglibertarian t1_jcb6hsn wrote

Damn that is some shit right there. They really do screw people over in every state.

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Aggravating_Foot_528 t1_jcb8ily wrote

The key is if you put all your money in in PA to move to a state where they don't tax it at all (no income tax) or IL or... Alabama? Where they don't tax it coming out of the retirement acct.

I guess it would take Congress to pass a law to harmonize the system if Congress itself constitutionally.can. I'm not sure they can because states can levy their own taxes without the federal government. Maybe the federal government could arm twist like they did with the drinking and smoking age.

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Hashtaglibertarian t1_jcbph2w wrote

I couldn’t even think of a solution so props to you for even putting that together. I love solution people ☺️

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BluCurry8 t1_jca8809 wrote

Or you live in a state that does not tax retirement income

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BEHodge t1_jc93z4a wrote

Fuck That. I’m headed to Greece or Uruguay. Forced to live here for career for the next twenty years, I’ll be damned if I’m stuck here for my death.

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69FunnyNumberGuy420 t1_jcayhb8 wrote

So mad about taxes you're moving to the third world to avoid paying them lol. That is some Facebook Grandpa All-Star stuff.

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hippata2023 t1_jcbaofg wrote

I can't imagine why anybody would retire in PA. The very first requirement I'm going to have of anyplace I retire to is that it can never snow.

This state's awful and being old here is just asking to slip and break a hip.

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MailOrderDog t1_jcbehh1 wrote

I'm going to put my snowblower in the back of my truck and drive south until someone asks what it is. Then I'll know I've found my new home.

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