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ralston6053
New Member

Early distribution from 401k what would the basis be for pa state tax

 
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Accepted Solutions
jerry2000
Alumni

Early distribution from 401k what would the basis be for pa state tax

Most 401k contributions are made with pre-tax money. That means that your basis is zero. You have a basis only if you made contributions to your 401k with after tax money.

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3 Replies
jerry2000
Alumni

Early distribution from 401k what would the basis be for pa state tax

Most 401k contributions are made with pre-tax money. That means that your basis is zero. You have a basis only if you made contributions to your 401k with after tax money.
lorizona
New Member

Early distribution from 401k what would the basis be for pa state tax

There is no deduction in PA for contributions so your basis (for PA state tax) would be whatever you contributed over the years less prior distributions (as stated below).
re2boys
Level 9

Early distribution from 401k what would the basis be for pa state tax

For PA purposes, the basis in a retirement plan is the sum of all employee contributions made through the years less the sum of all distributions made in prior years.  Do not count employer contributions or earnings.
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