As a fiduciary financial advisor in Virginia, Holland Capital writes fixed-fee retirement plans built around how Virginia taxes retirement income, and you decide who carries them out. Virginia clients work with us mainly by video and phone.

A written plan, priced before the work starts.

You can follow it yourself, give it to the advisor you have now or ask us to help. Your accounts do not have to move.

Virginia’s tax rules make the order of withdrawals worth planning, so the plan starts there.

How Virginia Taxes Retirement Income

Virginia has an income tax with rates from 2% to 5.75%. The top rate applies to taxable income above $17,000.

  • Social Security benefits are not taxed by Virginia.
  • Pensions and withdrawals from an IRA, 401(k) or 403(b) are generally taxed by Virginia to the extent they are included in federal adjusted gross income.
  • Some deductions and subtractions may apply, including the age deduction and the military retirement subtraction below.

Because the timing of each withdrawal affects your income in that year, we plan the order across the years. See retirement planning for how we set withdrawals.

The Age Deduction and the Military Subtraction

Virginia allows an age deduction of up to $12,000 per person for people 65 and older. For most people, it is reduced as income rises above set limits, and it can phase out completely.

Military retirees can subtract up to $40,000 of military retired pay for 2025 and later, with no age requirement. The subtraction also covers Survivor Benefit Plan payments to a surviving spouse.

VRS and Other Public Retirement Plans

Many Virginia teachers and public employees are covered by the Virginia Retirement System. Members may be in Plan 1, Plan 2 or the Hybrid Retirement Plan, and payout choices made at retirement are generally permanent once payments begin.

Our Virginia Retirement System planning guide explains how we fit a VRS pension into the rest of a plan.

No Estate or Inheritance Tax

Virginia has no estate tax and no inheritance tax. Large estates can still owe federal estate tax, and inherited retirement accounts can create income tax questions for your heirs. Our estate and wealth transfer planning work covers those questions.

How We Work Across Virginia

Holland Capital Management is an independent registered investment adviser and a fiduciary. M. Chad Holland, CFA, CFP® works directly with clients and is responsible for the planning and advice.

Our offices are in Charlotte, North Carolina and Winter Park, Florida. We work with Virginia clients primarily by video or phone. Each city page names where we meet by appointment when an in-person meeting makes sense.

The written plan comes first and stands on its own. If you later want help carrying it out, our investment management is a separate choice.

The first conversation is free. If there is work worth doing after that, we will define the scope and cost before you decide whether to move forward.

Virginia Communities We Serve

Northern Virginia

Shenandoah Valley

Central Virginia

Richmond Area

Hampton Roads

Roanoke and Southwest Virginia

Frequently Asked Questions

Does Virginia Tax Pensions and IRA Withdrawals?

Generally, yes, to the extent they are included in federal adjusted gross income. Social Security is not taxed by Virginia, and the age deduction or the military retirement subtraction may lower the tax for some retirees.

Why Choose a Fiduciary Financial Advisor for a Virginia Retirement?

Holland Capital acts as a fiduciary when providing financial planning and investment advice. For a Virginia retiree, that means planning withdrawals around state and federal tax with your interests first.

The plan is a fixed fee agreed in advance. If you later ask us to manage your investments, that has its own fee, and we tell you before you decide.

Can I Get a Plan Without Moving My Accounts?

Yes. We build the plan from your statements wherever your accounts are held. Whether anything moves later is your decision.

Photo: Doug Kerr / Wikimedia Commons / CC BY-SA 2.0, cropped.