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Forums  > General > Living, Working, Retiring> Re: [viktoremski] Paying state income taxes in the USA

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hunteradvisor


Apr 9, 2017, 12:45 PM

Views: 13756

Re: [viktoremski] Paying state income taxes in the USA

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Hi Brian,
RE this part of your comment:
"But how about pre-tax retirement savings plans, like 403, 457, and DC? They will be paid out to me in September of this year, after I terminate my employment in CA this summer".
Unless it's a really small payout, I would suggest you open a self directed IRA (Individual Retirement Account) at Fidelity (make sure to use your Mexico or TX address) and have your employer do a non taxable transfer to your IRA. This way you will not have tax due on the entire amount April of 2018. You can make withdrawals as needed to control which tax bracket you end up in. Your retirement money is taxed as 100% income to you.
Keep in mind that taxes will be due someplace, so you still need to file a US 1040 tax return and claim your retirement distribution as income. If you use Mexico, TX or any other non state income tax state then you are off the hook for at least that portion.
Isabel
www.RanchoSolyMar.com

(This post was edited by RickS on Apr 10, 2017, 9:28 AM)


Edit Log:
Post edited by RickS (Veteran) on Apr 10, 2017, 9:28 AM: clarification; spelling


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