Retirement income in Hawaii
Varies
Does Hawaii Tax Retirement Income?
Short answer: Partly. Employer-funded pensions (public and private) are exempt. Distributions from your own contributions, including 401(k)/403(b)/457 elective deferrals and IRAs you funded, are taxed. For plans with both employer and employee money (e.g., a 401(k) with an employer match), only the employer-funded share is exempt, computed with an exclusion ratio. Exact treatment depends on plan funding.
Government pensions: Government pensions are employer-funded and are generally exempt. 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 Hawaii
Varies
Individuals / Personal Taxes
Partly. Employer-funded pensions (public and private) are exempt. Distributions from your own contributions, including 401(k)/403(b)/457 elective deferrals and IRAs you funded, are taxed. For plans with both employer and employee money (e.g., a 401(k) with an employer match), only the employer-funded share is exempt, computed with an exclusion ratio. Exact treatment depends on plan funding.
Business justification
Partly. Employer-funded pensions (public and private) are exempt. Distributions from your own contributions, including 401(k)/403(b)/457 elective deferrals and IRAs you funded, are taxed. For plans with both employer and employee money (e.g., a 401(k) with an employer match), only the employer-funded share is exempt, computed with an exclusion ratio. Exact treatment depends on plan funding. Government pensions: Government pensions are employer-funded and are generally exempt. 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