After working hard their entire lives, the worst nightmare for every single retiree out there would be paying taxes on their income. Sadly, not all American retirees have the luxury of enjoying and getting all their retirement income, as some states do impose taxes on 401(k)s, IRAs, and pensions.
And whoever thinks that relocating is easy as pie he or she is most definitely wrong. No one wants to leave their friends, homes, neighbors, and their lives behind, but this situation might be financially beneficial for them.
In some U.S. states, Uncle Sam can’t reach to take a bite out of your retirement income, so if you’re living in one of these, you’re fortunate. If not, you might want to change that.
Let’s see which states exempt the common types of retirement income!