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Level 1
June 3, 2019
Question

Box 16 is higher than box 1 on my w2, the difference is my 401K deduction Is my state taxing me to much because it is using the state wage information from the w2?

  • June 3, 2019
  • 1 reply
  • 17 views

Have I been paying state taxes on my 401K contributions and will be paying again  as I withdraw

    1 reply

    Level 15
    June 3, 2019

    If you are in Pennsylvania, Pennsylvania does not permit the deduction of your contributions to a 401(k) plan. However, when you take money out of this 401(k) plan after retirement, you will pay only federal income tax on it - Pennsylvania will not tax such a distribution.

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