In which states ISN’T your TSP taxed?
Unfortunately, the TSP is taxed in most of the states, giving the retires an extra headache with it.
Since the TSP is becoming increasingly more popular and since the majority of the employee’s savings are in the classic TSP, there will be taxes applied on withdrawals.
However, there are a few states, 12 of them to be more exact, in which you don’t have to worry about getting taxes on TSP distributions, such as Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming, Illinois, Mississippi, and Pennsylvania.
So, what’s the total number of states that has NO state income tax? Well,…
