Lee's Summit, MO
Retirement Planning in Lee's Summit
Lee's Summit is a government-pension town, and the rulebook for it gets skipped constantly. The USCIS National Benefits Center employs more than 2,200 people here, roughly 900 of them federal. Add the R-7 school district's 2,803 employees on PSRS and the city's LAGERS plan, and most Lee's Summit households are sitting on a government pension Missouri treats very specifically, and very differently than a 401(k).
Why Lee's Summit
Planning built for Lee's Summit retirees
Jackson County · about 30 minutes southeast · US-50 at Douglas Street
Missouri's government pension subtraction is generous and capped: $46,381 for 2024, $47,633 for 2025, $48,967 for 2026, tracking the maximum Social Security benefit each year. The trap is RSMo 143.124.7, which reduces that subtraction dollar for dollar by any Social Security exemption you claim. A federal or district retiree cannot stack the two.
The audited employer table tells the rest of the story. For the year ended June 30, 2025, Lee's Summit's ten largest employers were led by the R-7 district at 2,803, Homeland Security's USCIS operation at 2,200, Saint Luke's at 1,900, and University Health Lakewood at 1,000. Together, the top ten account for just over 20% of city employment.
Three of Lee's Summit's four largest employers run government or government-adjacent retirement plans, which is why the Missouri public pension rules below matter more here than in any other city on this list.
USCIS National Benefits Center
More than 2,200 staff and contract employees across Lee's Summit and Overland Park, roughly 900 of them federal. FERS annuities qualify for Missouri's public pension subtraction; contractor plans do not.
Lee's Summit R-7 District
2,803 employees, the city's largest employer at 5.25% of city employment in the year ended June 30, 2025. Missouri school employees participate in state retirement systems that qualify as public pensions.
City of Lee's Summit
686 employees in a Missouri LAGERS plan. Employees contribute 0%; employer rates run 10.3% general to 15.1% public safety; benefits vest at five years with a CPI cost-of-living adjustment capped at 4%.
Missouri Taxes
Missouri rules for Lee's Summit government retirees
Missouri income tax law as of tax year 2026 · verified August 2026
Missouri subtracts your government retirement benefits up to the maximum Social Security benefit for the year, $48,967 for 2026. But RSMo 143.124.7 cuts that subtraction dollar for dollar by any Social Security exemption you claim. As a federal retiree, the two exemptions compete. They don't combine.
Privately funded savings get far less. RSMo 143.124.3 caps that exemption at $6,000, phased out dollar for dollar above $32,000 of Missouri AGI for married filing combined, gone by $38,000. Your 401(k), IRA, or deferred comp balance sits there. Above that, Missouri taxes at 4.7% for 2025 and 2026.
- Missouri top rate, TY2026
- 4.7%
- Capital gains subtraction, TY2025+
- 100%
- Public pension cap, TY2026
- $48,967
Sources: Missouri DOR pension FAQ · RSMo 143.124 · DOR 2025 legislative changes
Tax figures on this page are current as of the dates shown and are provided for general education only. Kansas and Missouri retirement tax rules changed in 2024 and 2025, and several of these figures are adjusted annually for inflation or depend on future revenue triggers. Nothing here is tax, legal, or investment advice. Confirm your own situation with your tax professional before acting.
Who We Help
Is this you?
01
Age 50+ and within 10 years of retirement
02
$2M or more saved, mostly in 401(k)s and IRAs
03
Ready for a tax-first approach to retirement planning
How it works
Your Tax-First Retirement Plan is built in 4 weeks
Two phases over ten weeks. Phase one builds the plan in four weeks. Phase two determines who handles the ongoing monitoring and optimization.
Phase 1
Three sessions. Four weeks.
Week 1 · No Cost
Strategy
A 30 to 45 minute conversation about your goals and concerns, including a walkthrough of your Nine Tax Surprises Analysis. You'll leave knowing whether it's the right fit, whether the Retire Ready Roadmap™ makes sense for your next steps, and what tax surprises Uncle Sam has waiting for you.
Week 3
$4,500
Your Roadmap Review
Nine tax surprises sit inside a traditional retirement that almost nobody warns you about. Your Retire Ready Roadmap™ answers 25 questions with your specific numbers, across all five areas.
Best for couples already working with an advisor or looking to partner with one.
Week 4
Alignment
A 7 to 10 day refining period lets your plan settle in. Follow-up questions get answered, and sometimes components of your plan need to be analyzed or strategized. This wraps up the initial plan set-up and sets the stage for what happens next.
Three Paths Forward
The plan is done. Here's what happens next.
Most Popular
01
Do It Yourself
The plan is yours. You manage the ongoing execution.
Most Popular
02
Take It to Your Advisor
Take the plan to your advisor. Hopefully they follow through.
Most Popular
03
Done For You
Continue with MOKAN.
Phase 2
Ongoing relationship
Done For You
1.0–1.5%
Wealth Management
The Retire Ready Roadmap™ is a living plan. It needs ongoing attention to maximize your retirement. Tax planning, investment management, Roth conversions, and IRMAA monitoring are handled for you. You focus on living the retirement you built.
Client Reviews
What Couples Say After Switching to Tax-First Planning
MOKAN Wealth Management has not offered compensation for the testimonials featured. The displayed testimonials have been chosen from a spectrum of client feedback. To the best of our understanding, there are no other conflicts of interest associated with these testimonials.
Nearby
Retirement planning nearby
Blue Springs, Kansas City, and Liberty share Missouri's rules and, like Lee's Summit, are dominated by a school district and a hospital.
Common Questions
Retiring in Lee's Summit: common questions
How does Missouri treat a FERS annuity for a Lee's Summit federal retiree?
A FERS annuity is provided by the United States, which RSMo 143.124.1 brings inside the definition, so RSMo 143.124.5 allows the subtraction, capped at the maximum Social Security benefit for the year, $48,967 for 2026. Critically, RSMo 143.124.7 reduces it dollar for dollar by any Social Security exemption you claim. The two don't stack.
Your spouse teaches in Lee's Summit R-7. Same Missouri treatment?
Largely, yes. The subtraction reaches a retirement allowance from this state or any political subdivision, covering state school employee systems and city LAGERS plans alike. R-7 is the city's largest employer at 2,803 people. One thing it won't do: under RSMo 143.124.12 and 135.010(5), neither exemption reduces income for the Missouri Property Tax Credit.
Is a Roth conversion cheaper in Missouri than in Kansas?
On rate alone, slightly. Missouri's top rate is 4.7% for 2025 and 2026, applying above $9,436 of Missouri taxable income under the 2026 withholding formula, so it behaves like a flat tax. Kansas charges 5.58% above $46,000. Either way, the converted amount enters federal AGI, then state AGI.
Next Step
Ready to Keep More of What You've Built?
If you and your spouse have $2M or more in investable assets, a tax-first retirement plan helps you keep more of it, year after year.