Nevada Tax Strategy: Beyond Zero State Tax
Nevada has no state income tax. But federal taxes can still consume 22-37% of your retirement income. Section 7702 provides true tax freedom at all levels.
The Nevada Tax Reality
Nevada's zero state income tax is a major advantage, but federal taxes still take a significant portion of your retirement savings.
✅ The Good News
- 0% state income tax
- No local income taxes
- Business-friendly environment
- No estate or inheritance tax
⚠️ The Challenge
- Federal taxes still apply (up to 37%)
- 401(k)/IRA distributions fully taxed federally
- RMDs can push you into higher brackets
- Gaming/entertainment industry volatility
Nevada 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 Nevada 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
Nevada already has no income tax—Section 7702 addresses the federal burden that remains.
Nevada Professionals We Typically Serve
Gaming Industry Executives
Casino executives and gaming professionals with high compensation packages
Healthcare Professionals
Physicians and specialists at major Nevada medical centers
Real Estate Developers
Developers capitalizing on Nevada's growth markets
Tech Transplants
Bay Area refugees bringing high incomes to Nevada
Airline Professionals
Pilots and crew based at Las Vegas hub
Construction Executives
Leaders in Nevada's booming construction sector
Nevada Areas We Serve
Matt Nye's Recommendation
"Nevada is where California refugees come to escape state income tax—and I see a lot of them. They're thrilled to save 10-13% on state taxes. But many don't realize their 401(k) is still federally taxed at up to 37%."
"Moving to Nevada is step one. Section 7702 is step two—complete tax freedom on your retirement income. No federal tax, no state tax, period."
"For gaming industry executives and tech transplants with high incomes, this combination is particularly powerful. You've already made the smart move to Nevada. Now make the smart move for retirement."
— Matt Nye, 20-Year Industry Veteran
Frequently Asked Questions
Nevada has no state income tax—why would I need Section 7702?
Federal taxes still apply to all your 401(k) and IRA withdrawals. For high earners, that's 22-37% to the IRS on every dollar. Section 7702 policy loans avoid federal taxes entirely.
I moved from California to Nevada for tax reasons. Is that enough?
You've saved up to 13.3% in state taxes—congratulations! But your 401(k) is still federally taxed. Section 7702 completes your tax strategy by eliminating federal taxes on retirement income.
How does Section 7702 compare to a Nevada 401(k)?
In Nevada, 401(k) distributions are taxed federally at 22-37%. Section 7702 policy loans are taxed at 0%—federal and state. Over 20 years of retirement, that difference can be $200,000+.
What about Nevada's business-friendly environment?
Nevada is great for business income, but when you retire and draw on traditional accounts, federal taxes apply regardless. Section 7702 gives business owners true tax freedom in retirement.
I split time between Nevada and another state. What happens?
Residency rules can get complicated. Section 7702 policy loans remain tax-free regardless of where you spend your time—no state tax questions, no federal tax either.
Ready for Nevada Tax Freedom?
Discover how Section 7702 can eliminate federal taxes on your retirement income. Schedule your free analysis today.
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