Find Out How You can Live a "Less Taxing" Lifestyle at Penn National
At a recent Tax Seminar, Lynn Rotz, founder and principal of Rotz & Stonesifer Certified Public Accountants showed how much you could save in state taxes by moving to Pennsylvania from Maryland, Virginia or West Virginia. Using two different retirement income profiles, he calculated that the state taxes for surrounding states are 3 to 4 times higher than in Pennsylvania!
Mr. Rotz compared the state tax due in Maryland (Howard, Montgomery & Frederick Co’s), Virginia, West Virginia versus Pennsylvania. The comparison used two income profiles, one with $120,000 of income and the other with $80,000. Income in both examples came predominately from retirement sources.
Why the large savings? Pennsylvania is a very welcoming state for retirees and does not tax any form of retirement income. For 401K’s and other forms of user-funded retirement plans, the advantages are dramatic. Most states do not tax your contributions to these plans while you work but only when you start to withdraw funds during retirement-Pennsylvania does just the opposite. This means that if you lived and worked in a state like Maryland and then move to Pennsylvania when you retire, the income you put in your 401k-type plan would never be taxed—it’s like one of the few things that seem “too good to be true” but are!
For more information, call Diane Boock at 800-338-7523, or email firstname.lastname@example.org