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South Carolina Doesn't Tax Social Security and Exempts the First $15,000 of a Retiree's 401(k) Withdrawals After 65. North Carolina Taxes Every Dollar of the Same Withdrawal at 3.99%, and the Two States Share a 335-Mile Border
One border crossing separates two very different tax bills on the same 401(k) withdrawal, and the state you assume is friendlier to retirees does not always win.