Retiring Out Of State Know The Financial Facts

Dated: 05/02/2016

Views: 641

Martin ( Marty ) Bassett 
Real Estate Professional 
Front Street Brokers 
My Website 
Eagle office 875 E. Plaza 
Inside Idaho Athletic Club 
Eagle, ID 83616 
O: 208- 629-3670 
M: 208-841-1436 Marty 
Contact Me


Retiring out of State? Know the Financial Facts

While you may be eyeing a move to a sunnier spot to spend your retirement years, experts say you need to consider a lot more than warm weather before choosing a new state to live in - tax laws, for one.

According to Rodger Friedman, founding partner and wealth manager at Steward Partners Global Advisory and author of “Forging Bonds of Steel,” “different states have different tax laws and other regulations that can have a major impact on your retirement funds. You need to be aware of these as you plan for where you want to live and how you want to live.” Here are a few tips for planning ahead:

New state – new income tax rules. Get to know them!
Familiarize yourself with the tax laws of the state you’re considering for your new home. Two of the top five on Bankrate’s list of best places to retire – South Dakota and Wyoming -- have no state income tax, along with five others: Nevada, Texas, Washington, Florida and Alaska.

Also, an itemized deduction in one state may not be an itemized deduction in another. If you use the long form (1040) to file federal income taxes, hire a reputable, experienced CPA for guidance.

Look into how your new state taxes retirement income. States differ on taxing interest income from tax-free municipal bonds. Some states give tax credits; treat public and private pensions differently; or offer federal, military or blanket exclusions.

The following states are community property states: Idaho, New Mexico, Texas, California, Arizona, Wisconsin, Nevada, Louisiana and Washington.

If you’re married, are you moving to a community property state?

Retiring out of State? Know the Financial Facts

There are nine community property states – those that divide all maritally-acquired assets and debt 50:50 in the event of divorce. Community property states are Idaho, New Mexico, Texas, California, Arizona, Wisconsin, Nevada, Louisiana and Washington.

Have a lawyer review your estate planning documents.
Your existing estate-planning documents should be reviewed by a lawyer in your new state of residence because statutes differ on the types of documents required and the powers bestowed upon each. For example, states are all over the map regarding the validity of a power of attorney document and the powers that may or may not be conveyed.

Keep the above information in mind to help stay financially fit in your golden years!

Blog author image

Marty Bassett

Your Trusted Real Estate Advisor Bassett Home Group Marty has been a full time Licensed Realtor in Idaho since 2007. He is a member of the Bassett Home Group along with his wife, Karla Bassett, ....

Want to Advertise on this Site?

Latest Blog Posts

2018 Spring Parade Of Home Info

2018 Boise Spring Parade of Homes is here!  What: Local builders showoff the latest in design and new construction technology.  Enjoy over a dozen gorgeous homes ready for your

Read More

CPR Credit Repair Idaho Shar Helton Chatting Credit Repair

CPR Credit Repair Idaho - Shar Helton Chatting Credit Repair!Hey guys!  Here we discuss another great and very important topic, Credit Repair. Shar Helton, Credit Expert with CPR- Credit

Read More

Great Meridian Location Close To Everything 1387 White Sands Meridian MLS 9868864

Great Meridian location close to everything!1387 White Sands, Meridian – MLS #9868864Great Meridian location close to shopping, schools, and the outdoors. This home has brand new carpet (w

Read More

Dont Miss This Fully Remodeled North End Beauty 812 N 17th St Boise MLS 98686638

Don’t Miss This Fully Remodeled North End Beauty!812 N 17th St, Boise - MLS #98686638Don’t miss this Gorgeous Remodel in one of Boise’s most desirable areas.  FULL Home Remodel

Read More