Georgia Tax Strategy: Peach State Planning for Tax Freedom
Georgia recently moved to a 5.49% flat tax, but combined with federal rates, retirement income faces significant taxation. Section 7702 provides complete tax freedom.
The Georgia Tax Picture
Georgia is transitioning to a flat tax and offers retirement income exclusions, but federal taxes remain the primary challenge for high earners.
✅ The Good News
- Moving to 5.49% flat tax
- Social Security fully exempt
- $65,000 retirement income exclusion (65+)
- Growing economy and job market
⚠️ The Challenge
- Federal taxes still apply (up to 37%)
- 401(k) distributions federally taxed
- Combined rate can exceed 42%
- Retirement exclusion has income limits
Georgia Tax By The Numbers
Section 7702: Your Tax Freedom Solution
Section 7702 of the IRS tax code creates a powerful opportunity: access your retirement funds through policy loans that are completely tax-free—at both federal and state levels. For Georgia residents, this means escaping both the state tax burden and federal taxation entirely.
Federal Tax-Free
Policy loans bypass federal income tax entirely. No 22-37% federal tax on your retirement income.
State Tax-Free
No Georgia state income tax on policy loans. Your retirement income stays tax-free at the state level.
Georgia Professionals We Typically Serve
Delta Professionals
Pilots, executives, and employees at Delta Air Lines headquarters
CNN and Media Executives
Broadcasting and entertainment industry leaders
Healthcare Professionals
Physicians at Emory, Piedmont, and other major systems
Tech Professionals
Software engineers and tech executives in Atlanta tech scene
Logistics Executives
UPS, Home Depot, and supply chain leaders
Film Industry Professionals
Producers and executives in Georgia film industry
Georgia Areas We Serve
Matt Nye's Recommendation
"Georgia is on fire—in a good way. Atlanta is a major hub for Delta, CNN, UPS, and a booming tech and film scene. The state is attracting talent with its improving tax rates and business climate."
"But here is what my Atlanta clients need to understand: Georgia lowering taxes does not affect the IRS. Federal taxes still take 22-37% of your 401(k), regardless of what happens in the state capitol."
"For Delta pilots, Emory physicians, and tech executives, Section 7702 is the complete solution. You get Georgia retirement exclusions plus federal tax freedom. That is how you truly enjoy retirement in the Peach State."
— Matt Nye, 20-Year Industry Veteran
Frequently Asked Questions
Georgia has a $65,000 retirement exclusion. Is that enough?
The exclusion is generous for state taxes, but for high earners withdrawing more than $65,000 annually, the excess is taxed. Plus federal taxes apply to everything. Section 7702 has no limits—all income is tax-free.
I am a Delta pilot based in Atlanta. How does Section 7702 help?
Pilots have excellent 401(k) plans but high incomes mean high federal taxes in retirement. Section 7702 provides tax-free retirement income to supplement your airline pension.
Georgia is moving to a flat tax. Should I wait to see if rates drop more?
Georgia rates are improving, but federal taxes will not change based on state policy. Your 401(k) is federally taxed at 22-37% regardless. Section 7702 addresses the federal problem now.
I work in the Georgia film industry. Is Section 7702 relevant?
Film industry income is often high but inconsistent. Section 7702 provides stable, tax-free retirement income regardless of production schedules. Convert taxable income into tax-free retirement.
Social Security is exempt in Georgia. Why do I need more planning?
Social Security exemption is great, but for high earners, 401(k) and IRA distributions often dwarf Social Security. Those distributions are fully taxed federally. Section 7702 fills the gap.
Ready for Georgia Tax Freedom?
Discover how Section 7702 can eliminate both state and federal taxes on your retirement income. Schedule your free analysis today.
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