Nebraska Tax Strategy: Heartland Planning for Freedom
Nebraska has a progressive income tax up to 5.84%. Combined with federal taxes, nearly 43% can go to government. Section 7702 provides tax-free access to your money.
The Nebraska Tax Challenge
Nebraska's top rate of 5.84% combined with federal taxes creates substantial retirement income taxation. The state taxes most retirement distributions.
✅ The Good News
- Growing Omaha economy with Fortune 500 headquarters
- Lower cost of living amplifies savings
- Strong agricultural and tech sectors
⚠️ The Challenge
- Top income rate 5.84% on retirement distributions
- Combined state/federal can approach 43%
- Social Security taxed at federal level
Nebraska 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 Nebraska 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 Nebraska state income tax on policy loans. Your retirement income stays tax-free at the state level.
Nebraska Professionals We Typically Serve
Fortune 500 Executives
Berkshire and other HQ compensation planning
Agricultural Business Owners
Farm and ranch wealth protection
Healthcare Professionals
UNMC system specialists and surgeons
Insurance Executives
Mutual of Omaha and industry professionals
Nebraska Areas We Serve
Matt Nye's Recommendation
"Nebraska is America's heartland—and Omaha is becoming a serious wealth center. Berkshire Hathaway, Mutual of Omaha, and a growing tech scene mean high-income professionals."
"But the 5.84% top rate plus federal taxes means over 40% of your 401(k) goes to government. For Fortune 500 executives, agricultural entrepreneurs, and healthcare professionals, that is a significant burden."
"Section 7702 is how you keep more of your Nebraska success. Tax-free retirement income means your hard work in the heartland pays off in retirement, not in taxes."
— Matt Nye, 20-Year Industry Veteran
Frequently Asked Questions
How does Section 7702 help Nebraska residents?
Section 7702 allows you to access retirement funds completely tax-free—avoiding Nebraska's 5.84% rate plus federal taxes. This can mean 40%+ more retirement income.
What makes Nebraska's tax situation challenging?
Nebraska taxes most retirement income at progressive rates up to 5.84%. Combined with federal taxes up to 37%, the total burden can approach 43% on 401(k) distributions.
I have farm income that varies. Does Section 7702 fit?
Actually yes—Section 7702 works especially well for variable income earners. The strategy focuses on building tax-free retirement assets, regardless of yearly income fluctuations.
Is Omaha a good place for this strategy?
Omaha executives are ideal candidates. The Fortune 500 presence means high earners who benefit most from tax-free retirement income. Section 7702 turns Omaha success into lasting wealth.
Ready for Nebraska 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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