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What to Know About Retiring in Maryland

One important factor in retirement planning is getting an idea of where you want to live. Maryland appeals to a lot of people with its proximity to the beach, rural areas, and cities, making it accommodating for varying types of lifestyles. Relocating to another state to retire can impact cost of living and acquire expenses that you may not have anticipated while creating a retirement plan. The reason why determining which state you may retire in is because laws and policies vary from state to state in regards to taxes, finances, and estate planning - which can all impact your retirement.

Some things to consider if you want to retire in Maryland are their taxes. For example, Maryland is one of two states that enforce inheritance and estate taxes. Make sure you have an advisor who is familiar with Maryland tax laws that can help guide you to best prepare for your future. It’s crucial to understand what is taxed in Maryland and what is not. This can affect your plans and income you’ve set aside for retirement. 

These are a few key points when it comes to retiring in Maryland:

  • Social Security is exempt from state taxes
  • income from IRAs and 401(k)s is fully taxable
  • income from private pensions is fully taxable
  • Public pension income is partly taxed
  • Income from a job in retirement is fully taxed
  • Income tax brackets in Maryland depend on your income and filing status

To learn more about retirement planning, check out InvestEd’s ultimate guide to retirement planning here.