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Taxes in Retirement: Strategic Planning for Keene, NH Professionals
As a Keene professional, you’ve worked too hard to let preventable taxes erode your retirement income. New Hampshire’s lack of state income tax is a win for retirees—but high property taxes and federal obligations can still take a toll. With the repeal of the interest and dividends tax in 2025, there’s even more reason to plan strategically. A local financial advisor who understands Keene’s tax landscape can help you make informed decisions and preserve more of what you’ve earned.
New Hampshire Retirement Taxes: What You Need to Know
The Advantages of Life in the Granite State
New Hampshire does not tax wages or salaries at the state level, which extends to all forms of retirement income. Social Security benefits, pension income, and distributions from retirement accounts such as 401(k)s and IRAs remain free from state income tax. Additionally, the state has no sales tax, creating significant everyday savings compared to neighboring states
The Challenges For NH Retirees
Despite the many advantages, it’s not all tax-free living for NH residents. Property taxes in New Hampshire are among the highest in the country. For local retirees on fixed incomes, paying real estate taxes can create a significant financial pressure that requires strategic planning.
Three Costly Tax Mistakes Keene Retirees Make
Without strategic retirement planning tactics, even savvy professionals may fall into potentially costly (and avoidable) tax situations. Some common mistakes made by local retirees include:
Ignoring Property Tax Relief
If you’re 65 or older, you may qualify for property exemptions or deferrals. These aren’t automatic—you have to apply. Missing this step can cost you thousands.
Tapping the Wrong Accounts First
Withdrawing funds in the right order matters. When you pull from tax-deferred accounts (like traditional 401(k)s) before tax-free accounts (like Roth IRAs), you create avoidable tax bills and potentially push yourself into higher brackets.
Forgetting About RMDs
Required Minimum Distributions begin at age 73. If you don’t plan ahead, these can push you into a higher bracket—or worse, trigger penalties of up to 25% for not taking them on time.
Four Powerful Retirement Tax Planning Strategies That Work
Strategic Roth Conversions
A Roth conversion moves funds from a pre-tax retirement account (traditional Roth, 401(k), etc.) into a Roth IRA. Converting traditional retirement funds to Roth accounts means paying taxes now to secure tax-free growth and withdrawals later. The key is timing these conversions during lower-income years to minimize the tax hit. For many NH professionals, the sweet spot for conversion often falls in the early retirement years before Social Security kicks in.
Tax-Loss Harvesting
Tax-loss harvesting allows you to sell investments at a loss and leverage those losses to offset gains in other investments to reduce your ultimate burden. By strategically selling underperforming investments, you can help neutralize the impact of your winners and put more money back in your pocket.
Smart Withdrawal Sequencing
Strategically planning the order in which you tap into your retirement accounts can dramatically impact your overall burden. A general practice takes taxable accounts first, tax-deferred accounts second, and tax-free accounts last – but this sequence needs customization based on your specific situation. A professional financial advisor can help you develop the right approach for you.
Charitable Giving
For philanthropically-minded NH professionals, strategies like qualified charitable distributions (QCDs) can help reduce taxes. A QCD allows individuals aged 70 ½ and older to donate directly from IRAs to a qualified charity, without paying taxes on the donation. Added bonus: For individuals who are at least 73 years old, QCDs may also count toward the required minimum distribution for the year.
Why You Need a Local Financial Advisor for Retirement Planning
The difference between a comfortable retirement and a truly secure financial future often comes down to local expertise. While New Hampshire offers significant advantages with no state income tax on retirement funds and the recently repealed interest and dividends tax, navigating the state’s exceptionally high property taxes requires specialized knowledge.
A local financial advisor doesn’t just understand these unique challenges—they’ve helped dozens of area professionals overcome them through strategies specifically designed for the Granite State’s distinctive financial environment. Their insider perspective delivers value that out-of-state or generic financial guidance simply cannot match, potentially saving you thousands in unnecessary taxes while ensuring your retirement plan aligns with both your personal goals and the local economic landscape.
What Local Knowledge Delivers
- Insider understanding of New Hampshire property exemptions and relief programs
- Knowledge of local economic trends that affect your investments
- Access to community resources that can enhance your retirement
- Strategies tailored to New Hampshire’s tax-advantaged status
Finding the Right Financial Advisor in Keene
Keene is home to several financial advisors with specialized credentials like the Certified Financial Planner (CFP®) designation, which requires comprehensive examination, ethical standards, and client-first fiduciary commitment.
Look for an advisor who:
- Has a physical presence in New Hampshire
- Demonstrates specific expertise in retirement and tax planning
- Takes time to understand your unique goals
- Explains complex strategies in plain language
Most importantly, look for an advisor who will connect with your tax and legal team to ensure your strategy remains fully aligned with your long-term lifestyle goals and vision.
Take the Next Step Toward Smarter Retirement Planning
Retirement decisions don’t need to be rushed—or made alone. With Birch Financial Group, you’ll work with a team that understands both the nuances of federal law and the local realities facing Keene-area professionals. We take the time to understand your goals and help you think through the strategies that support them.
Schedule a free consultation with Birch Financial Group to explore your options and learn how a more informed approach could benefit your long-term financial plan.
