Does Virginia tax my pension and IRA withdrawals?

Yes. Virginia taxes most retirement income including pensions, IRA distributions, and 401(k) withdrawals. There is a partial age deduction for taxpayers 65 and older, but it's limited. Tennessee, by contrast, has no state income tax on any retirement income.

Should I retire in Abingdon or move to Tennessee?

It depends on your income mix, property situation, and lifestyle preferences. For many Abingdon families, the state income tax savings from moving to Tennessee can be substantial — especially if you have significant pension or IRA income. We model both scenarios with your actual numbers so you can make an informed choice.

How does Social Security work across state lines?

Social Security benefits are not taxed by Virginia (for most income levels), and Tennessee doesn't tax them either. However, the interaction between Social Security and other retirement income — like pensions or IRA distributions — can affect your overall tax bracket. We model this carefully.

I work at Johnston Memorial Hospital. When can I afford to retire?

We build comprehensive retirement projections for Ballad Health employees, including your 403(b), any pension benefits, Social Security timing, and healthcare costs. The goal is to give you a clear, data-backed answer about whether your target retirement date is realistic.

Abingdon, VA

Retirement Planning in Abingdon

Retirement planning for Abingdon and Southwest Virginia families — with a focus on whether retiring in Tennessee could save you thousands per year in state income tax on pensions, IRAs, and Social Security.

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Retirement Planning for Abingdon Families

Abingdon is just across the state line from Bristol — but that line changes everything about your finances. Virginia has a state income tax. Tennessee doesn't. If you live in Abingdon and work in Tennessee, or if you're considering a move across the line, you need an advisor who can model both scenarios. Talley Wealth specializes in cross-state planning for Southwest Virginia families who want to keep more of what they earn.

Our retirement planning services are built for families and professionals in Washington County, VA who want proactive, coordinated guidance — not a once-a-year check-in.

What's Included

Virginia vs. Tennessee retirement income tax comparison
Pension and 401(k) distribution planning across state lines
Social Security optimization for Southwest VA families
Roth conversion strategies timed with state residency changes
Healthcare bridge planning for pre-Medicare retirees
Relocation retirement modeling (Abingdon → Bristol TN or Kingsport)

Why Abingdon Chooses Talley Wealth

Fiduciary Standard

We're legally required to act in your best interest. No commissions, no product quotas, no conflicts of interest.

Serving Washington County, VA

We know Abingdon's employers — Johnston Memorial Hospital (Ballad Health), Virginia Highlands Community College — and we understand the local economy.

CFP® + Enrolled Agent

Most advisors outsource tax. We do it in-house. Your financial plan and tax return are coordinated from day one.

Hypothetical Scenario

An Abingdon Couple Evaluating Retirement on Both Sides of the State Line

The Situation

A married couple in Abingdon — both in their early 60s — has combined retirement savings of $800K and expects $3,500/month in pension income. They're deciding whether to stay in Abingdon or buy a home in Bristol, TN or Kingsport. Virginia would tax their pension and IRA withdrawals; Tennessee would not. They want to know whether the tax savings justify the move.

How We Might Approach This

We might project their total retirement tax burden under three scenarios — staying in Abingdon, moving to Bristol TN, or moving to Kingsport. We'd factor in property taxes, home values, healthcare access, and the cumulative tax savings over 25 years. Then we'd layer in Roth conversion opportunities during the transition and identify the optimal Social Security claiming strategy for each scenario.

This is a hypothetical example for illustrative purposes only. Individual results vary. Talley Wealth Management does not guarantee any specific outcomes.

Retirement Planning FAQ

Other Services in Abingdon

Tax Planning

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Also Serving Nearby Communities

Bristol, TN Kingsport, TN Johnson City, TN Southwest Virginia, VA

What Abingdon Clients Say

67 Five-Star Reviewson Google

"Very pleased with the relationship built with David and team at Talley Financial. David has provided timely advice, answered my multiple questions with patience and knowledge, and has provided a well structured retirement plan to meet my family's needs."

Mark S.

Tri-Cities, TN

"David and his staff have been great to work with. The process he walked through to get to know me was a comfort. Understanding who I am, where I've been and where I want to go requires more than just reviewing financial information and he worked to learn."

Morris B.

Tri-Cities, TN

Testimonials are from current clients and reflect their individual experiences. These testimonials are not indicative of future results and should not be relied upon as a guarantee of any particular outcome.

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