If you invested in a retirement annuity that is not part of an employer-sponsored program or a commonly recognized retirement program, you have PA taxable income when you begin receiving annuity payments. For tax years beginning on or after January 1, 2005, any amounts reported in gross income for Federal Income Tax purposes for a retirement annuity that is not an employer-sponsored retirement annuity (reported as Codes 1D, 2D, 3D, 4D or 7D in Box 7 beginning with 2013 Forms 1099-R) are reported as interest income on PA Schedule A regardless of whether the annuity payments began before January 1, 2005, or on or after January 1, 2005.
Distributions listed in boxes 8 or 9b are distributions from an insurance policy or annuity purchased for your retirement. Such distributions are not taxable if:
1. Your insurance policy or annuity was from an eligible plan for PA PIT purposes; and
2. You retired after meeting the age or years of service conditions of such eligible plan.
