Retirees in California face $13,000 annual state and local tax bills
A 63-year-old California retiree with $1.7 million in savings and an annual withdrawal of $90,000 can expect to pay around $13,000 in state income and property taxes each year.
This hidden tax burden can amount to $258,000 over 20 years and is often overlooked by standard retirement calculators.
Relocating to a no-income-tax state before taking major 401(k) distributions can help eliminate the $4,400 annual state income tax.
This strategy is considered the highest-leverage move for retirees in this scenario.