Relocating from California to Nevada avoids 9.3% state tax on RMDs but exposes retirees to federal IRMAA surcharges and Social Security taxation.
A $2.1 million IRA balance triggers a $79,245 required minimum distribution at age 73, subject to California’s 9.3% state income tax. Moving to Nevada eliminates this liability, saving six figures over 20 years for high-balance retirees.
The IRS Uniform Lifetime Table sets the first-year RMD divisor at 26.5 for age 73, rising annually as the divisor shrinks. Federal rules still apply, with IRMAA surcharges kicking in above $109,000 MAGI and up to 85% of Social Security remaining taxable.
Qualified Charitable Distributions of up to $111,000 in 2026 can satisfy RMDs without increasing adjusted gross income, offering a federal workaround for retirees.