Thanks for responding. I'm still confused.
The screen shot you indicated is for retirement plans in Pennsylvania. Just to clarify, this is NOT retirement income, but rather an inheritance from a different state. The 401K was distributed to the estate in New York, and the estate distributed shares to the beneficiaries. My husband's share was reported to us on Schedule K-1 (Form 1041) Beneficiary's Share of Income, Deductions, Credits, etc.
You sited that "Payments made to the participant’s estate or designated beneficiary as a consequence of the participant’s death are not taxable. " Wouldn't that mean that this income is not taxable in Pennsylvania?
Thanks again.
