Recent NARFE article & State (TSP?) exemptions

[JimH]

Has anyone had the time to review the following retiring article from NARFE, regarding state exemptions (including TSP)?

For some states, they mention exemptions to the TSP.

I assume they’re referring to the ROTH TSP, right?

https://www.narfe.org/pdf/StateTaxRoundup.pdf

Would appreciate anyone with additional insight on the matter.

R,
JimH

[haywoodkb]

The article is about how states tax Social Security benefits, state and federal pensions, and retirement income. The tax laws vary greatly from state to state. The Federal Thrift Savings program is a type of 401K. Money to run the state government is raised in a variety of ways. States with lower income tax rates will have higher sales tax, or other ways to raise the required funds.

[winsprint]

I live in PA. TSP as well as other 401K's 100% State Tax free Traditional and ROTH, Military Retired Pay 100% State Tax Free. Also, Social security benefits, public and private pensions, and IRA distributions.
Income Tax Rate: 3.07%
Sales Tax Rate: 6.0%

[JimH]

Winsprint - got it.

So various states may simply decide to NOT tax TSP withdrawals.

Thanks,
JimH

[phalanx]

I live in PA. TSP as well as other 401K's 100% State Tax free Traditional and ROTH, Military Retired Pay 100% State Tax Free. Also, Social security benefits, public and private pensions, and IRA distributions.
Income Tax Rate: 3.07%
Sales Tax Rate: 6.0%

If I didn’t hate that state and Philly so much you’d almost have sold me as a retirement destination

[winsprint]

I live in PA. TSP as well as other 401K's 100% State Tax free Traditional and ROTH, Military Retired Pay 100% State Tax Free. Also, Social security benefits, public and private pensions, and IRA distributions.
Income Tax Rate: 3.07%
Sales Tax Rate: 6.0%

If I didn’t hate that state and Philly so much you’d almost have sold me as a retirement destination

It dose has some advantages. They also don't charge you sales tax on essentials, like most food items (fast food/restaurants excluded) and clothing. They make up some on Local Property and School tax. Varies widely from Townships/Burroughs. Example my township it's roughly $1400 per $100,000 for both annually. We have an annual local earned income tax also for township of 1.07%

[tomleeinar]

Cheesesteaks and no taxes on my TSP? PA is sounding better.

[tmj101]

check out this BY STATE tax calculator. Some big surprises in there.

https://smartasset.com/retirement/retirement-taxes

[croaker251]

Here is AL's law regarding taxing federal retirement benefits:
The Law:
Section 40-18-19 (5) Income received as annuities under the United States Retirement System from the United States Government Civil Service Retirement and Disability Fund, including income received from the Tennessee Valley Authority's pension system, income received as annuities under the United States Foreign Service Retirement and Disability Fund, or income received from any other United States government retirement and disability fund. 

Inspite of the word "any" in the last sentence, AL is coming after TSP distributions. I know this because a 2013 retiree met with a state tax agent and had pay taxes on his TSP distributions for tax years 16 and 17 and file an amended 18 return. Has anyone residing in AL had to pay back taxes and penalties? It appears AL is putting the spotlight on federal retiree returns.