West Virginia Tax Strategy: Mountain State Freedom Planning
West Virginia has a progressive income tax up to 5.12%. Combined with federal taxes, over 42% can go to government. Section 7702 provides tax-free access to your retirement funds.
The West Virginia Tax Challenge
West Virginia's 5.12% top rate combined with federal taxes creates substantial retirement income taxation. Energy and healthcare professionals face significant burdens.
✅ The Good News
- Lower cost of living statewide
- Beautiful mountain scenery
- Growing remote work destination
⚠️ The Challenge
- Top income rate 5.12% on retirement distributions
- Combined state/federal exceeds 42%
- Limited economic diversity
West Virginia 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 West Virginia 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 West Virginia state income tax on policy loans. Your retirement income stays tax-free at the state level.
West Virginia Professionals We Typically Serve
Energy Sector Professionals
Coal, gas, and utility executives
Healthcare Leaders
WVU Medicine and regional health systems
Remote Workers
Tech professionals relocating for lifestyle
Business Owners
Successful regional business operators
West Virginia Areas We Serve
Matt Nye's Recommendation
"West Virginia is wild and wonderful—and increasingly attractive for remote workers and retirees. But 5.12% state taxes plus federal means over 42% of your 401(k) goes to government."
"For energy professionals, healthcare executives, and remote workers, that burden adds up. West Virginia's low costs should mean more retirement security, not more taxes."
"Section 7702 is Mountain State smart. Tax-free retirement income means you keep more of what you have built. West Virginia values hard work. Hard work deserves to pay off for you."
— Matt Nye, 20-Year Industry Veteran
Frequently Asked Questions
How does Section 7702 help West Virginia residents?
Section 7702 allows you to access retirement funds completely tax-free—avoiding West Virginia's 5.12% rate plus federal taxes. This can mean 40%+ more retirement income.
West Virginia costs are low. Do I need tax savings?
Low costs help, but why give 42%+ to government if you do not have to? Tax-free retirement income means even more of your money stays in West Virginia.
I work in energy with variable income. Does Section 7702 fit?
Perfectly. Section 7702 provides stable, tax-free retirement income regardless of energy industry cycles. It is diversification from sector volatility.
I am considering moving here for remote work. Is this strategy good?
Excellent choice. WV cost of living plus tax-free retirement income is powerful. You get mountain living without sacrificing retirement security.
Ready for West Virginia 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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