Georgia Retirees Get Relief from Tax on Retirement Income

Georgia Governor Sonny Perdue has signed a bill that eliminates taxes on retirement income for senior citizens.

The tax cut would benefit more than 300,000 Georgians and make Georgia a more attractive location for retirees, according to a news release from the Governor’s office.

House Bill 1055 also eliminates the state portion of homeowner’s property taxes, adjusts fees to help cover the actual costs of the services for which they are levied, and includes a 1.45% hospital provider payment that will allow the state to draw down additional federal dollars and increase Medicaid reimbursements to hospitals and other providers.   

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“Signing this bill ensures a balanced budget and lays the groundwork for economic recovery,” said Perdue, in the news release. “We are creating an environment that encourages seniors to spend their retirement years and dollars in Georgia. We are also finally getting the state completely out of the property tax business and at the same time providing property tax relief for nearly all Georgians.” 

The two tax cuts will provide almost $400 million in tax relief when fully implemented. They will be phased in over five years beginning in 2012. 

Putnam Takes a Broader 529 View

Putnam Investments says it will begin to “actively seek opportunities” to serve the broader college savings market nationwide.

Putnam, which says it had addressed the 529 college savings needs through financial advisors in an exclusive relationship with the state of Ohio since 2000, now says it will be transitioning away from its exclusive work in 529 college savings for the Ohio Tuition Trust Authority (Tuition Trust), managing the Putnam CollegeAdvantage Plan, based on Tuition Trust’s intention to narrow the number of advisor-sold 529 plan options offered. 

Beginning in October, Putnam will make its bolstered investment organization and 529 experience set available for a host of potential marketplace assignments in the future.

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“We appreciate the experience of working  in partnership with the Ohio Tuition Trust Authority and financial advisors to help families  save for higher education over the last decade, but we see enormous opportunity to bring the full weight and breadth of Putnam’s strengthened investment capabilities, innovative product solutions, and heralded service and distribution teams to bear for the broader college savings marketplace,” commented Robert L. Reynolds, president and chief executive officer, Putnam Investments, in announcing the move.

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