Retirement income in California
Varies
Does California Tax Retirement Income?
Short answer: Yes. Pensions and 401(k)/IRA withdrawals are fully taxed as ordinary income; California has no retirement income exclusion.
Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Retirement income in California
Varies
Individuals / Personal Taxes
Yes. Pensions and 401(k)/IRA withdrawals are fully taxed as ordinary income; California has no retirement income exclusion.
Business justification
Yes. Pensions and 401(k)/IRA withdrawals are fully taxed as ordinary income; California has no retirement income exclusion. Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
Category
- Personal Tax Deductions