Question by  spragoo (1500)

How can I avoid 401k state income tax?


Answer by  Att4372 (1704)

Most states let you exclude 401(k) contributions from your income. You have to live / work in a state that permits this. After you retire, move to a state that doesn't tax income. This is harder than it sounds because you might owe tax to the state that is the source of the 401(k) pension. These states withhold from pensions.

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