These states won’t tax your 401(K) and IRA
It’s not ideal at all, but only 3 states will give you a pass when it comes to taxing your 401 (K) and IRA (kind of unfair if you ask us). Illinois, Mississippi and Pennsylvania are the only states that will let you cash your 401(K) and IRA without expecting anything in return.
In addition, there’s a couple of states that will not tax your pension, but will tax your 401(K) and IRA. Seems like a twist, but it’s a fair share for Alabama and Hawaii to do so.
You will be happy to learn that there are several generous states that WON’T tax your estate or inheritance, click on the next page to see which ones:
