What Nebraska actually takes from a 401(k) withdrawal, a pension, and Social Security — in dollars, against the state’s own brackets and exclusions rather than a yes-or-no list.
Long-term index-fund growth after expense-ratio drag — and what your state takes from the gains at withdrawal.
When your RMDs start under SECURE 2.0, how much this year's is, and what missing it costs.
2026 limits, employer match, the 60-63 super catch-up, and whether the Roth catch-up mandate applies to you.
A required minimum distribution is ordinary income, taxed at your top bracket and often pushing you into the next one. Here is the federal tax on RMDs from $20,000 to $75,000 at different income levels, why the default 10% withholding usually leaves a bill, how to avoid an underpayment penalty, and the three side effects that make the real rate higher than the bracket.
The required minimum distribution on every common balance at every age from 73 to 95, worked from the IRS table, plus what happens to the account over twenty years of withdrawals at 0%, 5% and 7% returns. The short version: the share you must take rises every year, and at good returns the dollar amount keeps rising with it.
What moving actually saves, on your own income mix rather than a headline rate — and how to establish domicile so the state you left cannot follow you.
Which account to draw first, priced. The three cliffs a withdrawal can cross without warning, the conversion window almost nobody uses, and why the order is the last big decision you can still change.
Nebraska guide
On the ordinary retirement profile — $34,000 of Social Security and $61,000 of plan distributions — Nebraska takes $2,072 a year in state income tax.
That is the number people compare, and it is the smallest of three. Property tax adds about $4,332 on the state's $300,800 median home, and insurance another $4,815. The three together come to $11,219, placing Nebraska 44th of 50.
A note before you start. This is general education, not tax advice. Every Nebraska figure comes from this site's own fifty-state income-tax dataset and its retirement tax engine, computed for a single filer aged 70 unless stated otherwise; property tax, median home price and insurance figures come from the site's core state dataset. Rates are for tax year 2026. Property tax is assessed locally in most states, so the effective rate here is a statewide figure rather than your county's.
On Social Security. 100% exempt with no income threshold. Neb. Rev. Stat. 77-2716(14)(a) reduces federal AGI by a percentage of Social Security benefits included in it, phasing 5% (2021), 40% (2022), 60% (2023), and 'One hundred percent for taxable years beginning or deemed to begin on or after January 1, 2024' — with no sunset, so it applies unchanged in 2026. The old income test is gone and this is the commonest stale claim about Nebraska: the AGI-limited exclusion at 77-2716(13) (roughly $58,000 married-joint / $43,000 other) applied only 'on or after January 1, 2015, and before January 1, 2024' and has expired.
On 401(k) and IRA distributions. Fully taxable as ordinary income. Confirmed negative rather than an unresearched gap: Nebraska taxable income begins from federal AGI on Form 1040N line 5, and Schedule I Part B — the complete list of subtractions, lines 14 through 43 — contains no line for 401(k), 403(b), IRA, or general retirement plan distributions. The only retirement-related subtractions in that list are Railroad Retirement benefits (line 18), Social Security (line 31), military retirement (line 32), CSRS annuities (line 38), and retired public-safety health premiums (line 36). There is no general pension exclusion, no age-based exclusion, and no dollar-capped retirement deduction. So a federal 10% early-withdrawal penalty carries a Nebraska add-on of 2.96% of the distribution.
Read the full Nebraska guide →18 min read · Updated 2026-09-03