Do I have to pay PA taxes on my RMD from my 401K after age 72?

cmazerov2007 · ‎June 4, 2019

AnthonyC · ‎June 4, 2019

No, Pennsylvania is one of the friendliest states for retirement income tax-wise. While PA does not exclude retirement contributions from taxation like the federal government does (i.e 401(k) pre-tax), PA fully exempts most retirement withdrawal income from taxation. As long as you have met the requirements of your plan for withdrawal (i.e it's not an early withdrawal), which it appears you have - your retirement income will not be taxed by PA.

See some of these FAQ’s from the PA Department of Revenue:

How do I know if the amount on my 1099R is taxable on my PA Personal Income Tax Return?

Are my contributions to a 401(k) plan excluded from employer withholding?

(See note at bottom … “however, when you retire and start receiving distributions, the amount you withdraw from your 401(k) plan is not subject to PA personal income tax.”)

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AnthonyC · ‎June 4, 2019

No, Pennsylvania is one of the friendliest states for retirement income tax-wise. While PA does not exclude retirement contributions from taxation like the federal government does (i.e 401(k) pre-tax), PA fully exempts most retirement withdrawal income from taxation. As long as you have met the requirements of your plan for withdrawal (i.e it's not an early withdrawal), which it appears you have - your retirement income will not be taxed by PA.

See some of these FAQ’s from the PA Department of Revenue:

How do I know if the amount on my 1099R is taxable on my PA Personal Income Tax Return?

Are my contributions to a 401(k) plan excluded from employer withholding?

(See note at bottom … “however, when you retire and start receiving distributions, the amount you withdraw from your 401(k) plan is not subject to PA personal income tax.”)