Retirement income in Pennsylvania
Varies
Does Pennsylvania Tax Retirement Income?
Short answer: No. Distributions from eligible employer retirement plans after meeting the plan's retirement age/years-of-service conditions are exempt, as are IRA distributions after age 59½. Early distributions are taxed to the extent they exceed contributions.
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 Pennsylvania
Varies
Individuals / Personal Taxes
No. Distributions from eligible employer retirement plans after meeting the plan's retirement age/years-of-service conditions are exempt, as are IRA distributions after age 59½. Early distributions are taxed to the extent they exceed contributions.
Business justification
No. Distributions from eligible employer retirement plans after meeting the plan's retirement age/years-of-service conditions are exempt, as are IRA distributions after age 59½. Early distributions are taxed to the extent they exceed contributions. 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