I received a 1099-R with code 7 (normal distribution) from my 401K (not an IRA). It was the RMD with taxes withheld Is this income taxable in Pennsylvania or do I say it is a qualified plan and TP is qualified and it would be nontaxable for this state?
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1 Best answer
npierson7
Level 1
Feb 22, 2021 4:16:20 PM
No, at the state level, 401k distributions are generally not taxable in Pennsylvania. It only taxable on the Federal level.
3 Replies
npierson7
Level 1
Feb 22, 2021 4:16:20 PM
No, at the state level, 401k distributions are generally not taxable in Pennsylvania. It only taxable on the Federal level.
herczeg11
New Member
Mar 6, 2023 9:14:44 AM
How can I show that my pension is not taxable in PA?
MayaD
Expert Alumni
Mar 6, 2023 9:35:30 AM
Please check Vanessa's answer to exclude your pension from PA taxable income.
PA State doesn't tax pension income you receive from an eligible employer-sponsored retirement plan (except if you retire early).