Wisconsin Tax Strategy: Badger State Freedom Planning
Wisconsin has a progressive income tax up to 7.65%. Combined with federal taxes, over 44% can go to government. Section 7702 provides complete tax freedom.
The Wisconsin Tax Challenge
Wisconsin's 7.65% top rate is among the higher in the Midwest. Combined with federal taxes, the burden on retirement income is substantial.
✅ The Good News
- Strong manufacturing economy
- Lower cost of living than coasts
- Quality of life amenities
⚠️ The Challenge
- Top income rate 7.65%—high for Midwest
- Combined state/federal can exceed 44%
- Cold climate limits retirement appeal
Wisconsin 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 Wisconsin 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 Wisconsin state income tax on policy loans. Your retirement income stays tax-free at the state level.
Wisconsin Professionals We Typically Serve
Manufacturing Executives
Harley, Kohler, and industrial leadership
Healthcare Professionals
Epic, Froedtert, and UW Health specialists
Agricultural Business Owners
Dairy and farming operations
Business Leaders
Northwestern Mutual and corporate executives
Wisconsin Areas We Serve
Matt Nye's Recommendation
"Wisconsin is America's Dairyland—but it is also home to Epic, Northwestern Mutual, and serious wealth. That 7.65% top rate plus federal means over 44% of your 401(k) goes to government."
"For manufacturing executives, healthcare professionals at Epic and UW Health, and agricultural business owners, that is a significant burden. Wisconsin's cost of living advantage disappears when taxes take 44%."
"Section 7702 is Badger smart. Tax-free retirement income means you keep more of your Wisconsin success. That is hard work paying off for you, not the taxman."
— Matt Nye, 20-Year Industry Veteran
Frequently Asked Questions
How does Section 7702 help Wisconsin residents?
Section 7702 allows you to access retirement funds completely tax-free—avoiding Wisconsin's 7.65% rate plus federal taxes. This can mean 44%+ more retirement income.
Wisconsin's rate is high for the Midwest. Should I move?
Many consider it. But Section 7702 means you can stay. Tax-free retirement income makes Wisconsin affordable. Keep the lakes, the Packers, and the community you love.
I work at Epic in Madison. Does this help tech workers?
Absolutely. Epic employees often have significant compensation. Section 7702 provides tax-free retirement income to keep more of your tech success.
Dairy farming has variable income. Does Section 7702 work?
Very well. Section 7702 provides stable, tax-free retirement income independent of milk prices and agricultural cycles. It is diversification from the farm.
Ready for Wisconsin 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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