Retiring in Nebraska

Every figure below is sourced to Nebraska’s own publications and dated. Estimates only, and not tax advice.

Retirement tax by state

What your state actually takes from a 401(k) withdrawal, a pension, and Social Security — in dollars, not a yes/no list.

Brokerage account growth

Long-term index-fund growth after expense-ratio drag — and what your state takes from the gains at withdrawal.

Roth vs. Traditional

Decided on the two rates that actually govern it — yours now, and yours at withdrawal, in the state you'll retire in rather than the one you're in.

Contribution limit optimizer

2026 limits, employer match, the 60-63 super catch-up, and whether the Roth catch-up mandate applies to you.

Required minimum distribution

When your RMDs start under SECURE 2.0, how much this year's is, and what missing it costs.

Backdoor Roth pro-rata

What a backdoor Roth conversion would actually cost you in tax — the pro-rata rule most calculators only describe.

Self-directed IRA real estate (UDFI)

The tax a leveraged rental owes inside a self-directed IRA — computed at trust rates, not the rate you'd assume.

Nebraska at a glance

401(k) and IRA withdrawals
Taxed
Social Security
Not taxed
Top marginal rate
4.55%
The top of 3 graduated brackets.
Tax year
2026
Brackets are legislated and change on a fixed calendar, so the year matters.
  • Nebraska's rate schedule is mid-phase-down under LB 754 of 2023: 5.84% in 2024, 5.20% in 2025, 4.55% in 2026, and 3.99% from 2027. The 2026 figure is therefore correct only for 2026 and will change in January.
  • The 2026 schedule is statutorily four brackets but operates as THREE, because LB 754 pulled rate three down to meet rate four — both are 4.55% for 2026. The Department states this on the 2026 rate schedule itself. The two are collapsed into a single top bracket here, which is arithmetically identical and avoids an adjacent-duplicate-rate row that would look like a data error.
  • Nebraska's National Guard income exclusion under 77-2716(21) is in force for 2026 and SUNSETS after it — 100% of drill pay, 32 U.S.C. duty status pay, and federal dual-status technician wages. That is active-service income rather than retirement income and is not modelled here.
  • A first-time home buyer savings account subtraction under 77-2716(27) takes effect 2027-01-01 and does not apply to 2026.