Retirement tax questions

I assume that you are in the Pennsylvania state interview in TurboTax.

On terms of answering the retirement plan screen to know if your plan is tax exempt in Pennsylvania, there are two requirements:

• You are eligible if you were eligible to retire under your plan's rules (as opposed to early).
• The plan is eligible if it meets Pennsylvania rules. See this article from the Pennsylvania Institute of Certified Public Accountants about eligible plans in Pennsylvania.

Some of the plans you can identify directly (like military pension) but most retirement plans you may have to do some investigation. That is, you may need to call your retirement plan and ask them if they meet the rules as described in the link above.

For most qualified retirement plans (i.e., pensions and annuities from an employer), if you are of eligible full retirement age in the plan, the pension is probably not taxable - but call them anyway.