Intangibles in Florida

Today TaxMama hears from Don in Ocala, FL who wants to know, “if I withdraw funds from my 401k, are they taxable under state law?”

Hi Don,

You’re in Florida. They don’t have an income tax.

They do have some kind of asset or investment tax, but I am not familiar with state laws.

Ah, Here is a list of Florida forms.
http://www.myflorida.com/dor/forms/download/!all.html

There IS an intangible property tax that covers investment assets. Here are the instructions for the form.
http://www.myflorida.com/dor/forms/2006/dr601in.pdf

It covers

• Shares of stock issued by any corporation.
• Bonds issued by corporations or state, county or municipal governments outside the State of Florida.
• Accounts receivable or other loans which are not secured by real property.
• Shares or units of ownership in mutual and money market funds and limited liability companies.

But I don’t see retirement plan distributions, or balances, among the intangibles that are taxable – so, no.
You don’t have to pay tax to Florida on the money you draw from your 401(k) plan.

Of course, you will have to pay IRS, but…you already knew that.

Naturally, each person listening to this TaxQuip will need to check with their own state laws. You can look up your own state using this link – http://www.taxadmin.org/fta/link/forms.html

And remember, you’ll find answers to questions about retirement taxes and all kinds of tax issues, free. Where? Where else? At TaxMama.com

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