PA resident who left job at age 55. At 57 took a withdrawal from my 401k plan which had remained with former employer. No penalty due for early withdrawal but do I owe PA state taxes since not yet 59.5? Taxes were paid to PA when the money was put into the 401k. Basis much higher than amount taken out. Aware owe taxes to Feds.
If your 1099R, box 7, is coded as a 1 or 2, that means that your retirement plan says you have not met the normal retirement age for the plan. Each employer and plan defines those parameters so different companies may have different ages for normal retirement. The distribution is then taxable to the extent it exceeds your basis in the plan.
If box 7 is coded 7, it is not taxable in PA, you've met the requirements for normal retirement.
Basis is total of your contributions (not employers or earnings) less any previous distributions from that plan.
If your 1099R, box 7, is coded as a 1 or 2, that means that your retirement plan says you have not met the normal retirement age for the plan. Each employer and plan defines those parameters so different companies may have different ages for normal retirement. The distribution is then taxable to the extent it exceeds your basis in the plan.
If box 7 is coded 7, it is not taxable in PA, you've met the requirements for normal retirement.
Basis is total of your contributions (not employers or earnings) less any previous distributions from that plan.