Beginning in 2016 retirement income will no longer be subject to state income taxation in Georgia for those over age 62. Also, the state portion of homeowners’ property taxes for those over age 62 will be waived. The current income exclusion amount will gradually increase from its current level of $35,000 so benefits will improve each year until 2016. This may provide enough incentive for many citizens to retire in Georgia rather than move to a state with better tax benefits. Also, this may encourage some to spend money in retirement accounts that would normally not be available to boost our state economy. Mostly, it will cause some who are considering converting their IRAs to Roth IRAs to carefully consider this decision.
Where will the revenue loss be made up by the State of Georgia? I have my own thoughts, but for now please speak with your accounting and financial planning advisors to see how this legislative change may affect you.
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