The tax landscape of potential Retirement locations can affect Sherwin-Williams employees - moving to a tax-friendly state could reduce taxes and increase savings for Retirement, said (Advisor Name), a representative of the Retirement Group, a division of Wealth Enhancement Group.
The right place to retire could save you big bucks for those nearing Retirement, says (Advisor Name), a representative of the Retirement Group, a division of Wealth Enhancement Group.
In this article, we will discuss:
1. Tax burdens differ between states in the United States.
2. Tax-friendly states for retirees
3. Strategies to reduce tax liability and maximize financial well-being.
A new report details stark differences in tax burdens across U.S. states - and how that disproportionately burdens taxpayers in some places compared to others. While the average American pays about USD 11,000 in federal taxes a year, the actual tax burden largely depends on where you live, personal finance website WalletHub said. It is exacerbated by differences in state and local tax rates, where residents pay double the amount of income taxes compared to low-tax states. The researchers used three types of taxes to determine the tax burden: homestead and excise taxes, individual income taxes, and sales and excise taxes. The tax burden for each state was computed from household income, home and car values, and household spending data.
For those looking to cut their taxes and keep more of their paycheck, Alaska offers the best deal at just 5.06%. However, new residents should expect to pay a big chunk of their income in taxes - 12.47%. The regional disparities are highlighted in WalletHub's rankings of states with the highest and lowest tax burdens. New York, Hawaii, Maine, Vermont and Connecticut rank among the highest tax states. Meanwhile, residents of low-tax states like Alaska, Delaware, New Hampshire, Tennessee and Florida pay a relatively light tax burden.
Understanding these differences in tax burdens may help individuals, particularly A.O. Smith workers and retirees planning for their financial futures, make sound decisions about residence and financial strategies. Consider the tax implications of different states to optimize financial situation and possibly reduce tax liabilities. People should research and analyze the tax landscape of their desired location to maximize their money and secure a retirement.
How tax-friendly a state is can affect your retirement - literally. Kiplinger's study from February 24, 2023, found some states are more tax-friendly for retirees than others. Taxes on your retirement income such as income taxes, property taxes, sales taxes and tax exemptions can affect your financial security in retirement. States like Alaska, Wyoming and Nevada - which have no income taxes - are often tax-friendly for retirees. In contrast, Connecticut, New York and New Jersey have higher taxes. Consideration of a state's tax friendliness may help A.O. Smith workers planning to retire and current retirees decide where to live and how to budget for retirement.
Planning for retirement involves plotting a course across terrain. Just as seasoned explorers pick their path according to topography, A.O. Smith workers and retirees must determine how tax friendly states are before they settle down. Imagine a journey where some states offer smooth sailing - a river with low taxes - while other states impose mountainous taxes on you. Know how state taxes affect your route to financial peace and keep more of your savings in your pocket. Also read: set sail on a tax-friendly voyage to the most and least taxed states for a fun and financially secure journey to retirement
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- Corporate Employees: 8 Factors When Choosing a Mutual Fund
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- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
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- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
Sources:
1. Kiernan, John S. 'States with the Highest & Lowest Tax Rates.' WalletHub , 4 Mar. 2024, www.wallethub.com/edu/best-worst-states-to-be-a-taxpayer/2416?utm_source=chatgpt.com .
2. Washington, Katelyn. 'State-by-State Guide to Taxes on Retirees.' Kiplinger , 22 Oct. 2024, www.kiplinger.com/retirement/600892/state-by-state-guide-to-taxes-on-retirees?utm_source=chatgpt.com .
3. Schubel, Kate. 'Retirement Taxes: How All 50 States Tax Retirees.' Kiplinger , 18 Jan. 2025, www.kiplinger.com/retirement/602202/taxes-in-retirement-how-all-50-states-tax-retirees?utm_source=chatgpt.com .
4. 'How the 50 States Rank By Tax Burden.' CPA Practice Advisor , 1 Dec. 2024, www.cpapracticeadvisor.com/2024/12/01/how-the-50-states-rank-by-tax-burden/103495/?utm_source=chatgpt.com .
5. Schubel, Kate. 'States That Won't Tax Your Retirement Income in 2025.' Kiplinger , 2 Feb. 2025, www.kiplinger.com/taxes/states-that-dont-tax-retirement-income?utm_source=chatgpt.com .
What is the Sherwin-Williams 401(k) plan?
The Sherwin-Williams 401(k) plan is a retirement savings plan that allows employees to save a portion of their salary on a pre-tax or after-tax basis for their future retirement.
How can I enroll in the Sherwin-Williams 401(k) plan?
Employees can enroll in the Sherwin-Williams 401(k) plan by accessing the companys benefits portal or contacting the HR department for guidance on the enrollment process.
What is the employer match for the Sherwin-Williams 401(k) plan?
Sherwin-Williams offers a competitive employer match for contributions made to the 401(k) plan, typically matching a percentage of employee contributions up to a certain limit.
At what age can I start contributing to the Sherwin-Williams 401(k) plan?
Employees can start contributing to the Sherwin-Williams 401(k) plan as soon as they are eligible, which is generally after completing a certain period of service with the company.
Can I take a loan against my Sherwin-Williams 401(k) plan?
Yes, Sherwin-Williams allows employees to take loans against their 401(k) plan balance under certain conditions. Employees should review the plans specific loan provisions for details.
What investment options are available in the Sherwin-Williams 401(k) plan?
The Sherwin-Williams 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to help employees grow their retirement savings.
How often can I change my contribution amount to the Sherwin-Williams 401(k) plan?
Employees can change their contribution amount to the Sherwin-Williams 401(k) plan at designated times throughout the year, typically during open enrollment or after a qualifying life event.
Is there a vesting schedule for the Sherwin-Williams 401(k) employer match?
Yes, Sherwin-Williams has a vesting schedule for the employer match, meaning employees must work for the company for a certain period to fully own the matched contributions.
How can I check my Sherwin-Williams 401(k) balance?
Employees can check their Sherwin-Williams 401(k) balance by logging into the benefits portal or contacting the plan administrator for assistance.
What happens to my Sherwin-Williams 401(k) if I leave the company?
If you leave Sherwin-Williams, you have several options for your 401(k) balance, including rolling it over to an IRA or a new employers plan, cashing it out, or leaving it in the Sherwin-Williams plan if eligible.
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