Total Financial Solutions | 401 K Plans, Income Tax, Property Tax
November 11, 2014
401 K Plans and Sates without Income Tax
Most common mistakes when it comes to retirement plans; borrowing money from retirement accounts. The IRS will NOT make a plan that lets you “win”. Whether your in a business, or small company, you can still have a 401 K plan; it will be a smaller plan for the lesser amount of employees, but still include the retirement benefits that go above pensions.It is important to include a higher amount of your check to go towards your retirement plan. About 50% of 9%, of each check should go into a retirement plan.
401 K plans are pretty much the main plans to have when it comes to retirement. Companies may offer pensions, but are not as good as 401 K plans. Be sure to not make repetitive financial mistakes now, or avoidable financial mistakes in the future. Holding money in accounts with interest is a win-win for you and the bank, but there is only so much time to put money into retirement plans.
Which States have 0% income tax? Alaska, Nevada, Florida, South Dakota, Washington, Wyoming, Oregon, and Texas. Texas has mostly “normal” people when it comes to financial income and jobs, but has a large amount of property taxes that you can never pay off. Washington has a higher sales tax, while Oregon has no sales tax at all. So some of these states do have a cost for the absence of income tax.©2014 KHTS AM-1220 | SCVTV