On the PA tax form, what do I select for a pension when asked what type of retirement income?

[JamesG1]

In TurboTax, in the Pennsylvania state income tax return, at the screen What kind of retirement income do you have from Pennsylvania, select the retirement distribution that applies to your income.

Pennsylvania Personal Income Tax Guide, page 48, states:

Exempt Distributions from an Employer Provided Retirement Plan 

Under Pennsylvania law, payments commonly recognized as old age or retirement benefits are not subject to tax. In order to be considered exempt retirement benefits, the payments must come from an eligible Pennsylvania retirement plan and must be paid to persons retired from service after reaching a specific age or after a stated period of employment. 

Plan other than Employer Provided Retirement Plan 

If a taxpayer receives distributions from a plan that is not an employer provided plan, such as an Individual Retirement Arrangement (IRA), the department will consider the distributions exempt retirement income so long as the taxpayer is not required to pay a penalty for early withdrawal. For example, if a taxpayer received a distribution from an IRA after retirement, death, disability, separation from service unforeseeable emergency or attaining the age of 59½ and a penalty is not paid, the distribution is not included in the taxpayer’s compensation.

[Olinguito]

That doesn't answer the question. The choices from the dropdown list are:

Early distribution from a ret. plan
Rollover
I'm eligible, plan's eligible (No PA tax)
I'm not eligible yet, plan's eligible in PA
Traditional or Roth IRA: I'm over 59.5
Traditional or Roth IRA: I'm under 59.5

Annuity or non Civil Svc Disability
Non-qualified deferred comp. plan
Life insurance or endowment
Charitable gift annuity
ESOP: Allocated ESOP stock dividend
ESOP: Non-Allocated ESOP stock dividend
KSOP: Taxable ESOP within 401(k)
KSOP: Nontaxable ESOP within 401(k)

The question was, "Which of these describes a private employer provided pension?" I select "Annuity..."

[DavidD66]

Can you clarify your question?  What is the source of the retirement distribution?  What is the code in Box 7 or your 1099-R?  What was your age on 12-31-25?

[Olinguito]

Code 7, 65 & retired

[Olinguito]

source: 

State Street Retiree Services for 

Ret. Allowance Plan of The Hospital Univ. of Penn

Account number:

University - Penn Plan

[Olinguito]

Why not just include the word "pension" along with annuity and disability?

[DavidD66]

You should select "I'm eligible, plan's eligible (No PA tax)".  

[Olinguito]

Wrong again. The plan already withholds PA tax.

[DavidD66]

The fact that the plan withholds PA tax doesn't mean the distribution is taxable by the state.   Pennsylvania does not tax distributions from Pennsylvania Eligible Retirement Plans.  Below is the criteria for a plan to qualify, according to the PA Personal Income Tax Guide - Gross Compensation (DSM-12)

PENNSYLVANIA ELIGIBLE RETIREMENT PLANS 

Criteria for A Plan to Qualify as an Eligible Pennsylvania Retirement Plan

A plan is considered an eligible Pennsylvania retirement plan if, at a minimum, the plan has the following four characteristics: 

• The plan is reduced to writing and has been communicated to the participants; 
• The plan establishes eligibility requirements for separation of service or a combination of old age or infirmity, and long-continued service; 
• The plan provides for payments to be made at regularly recurring intervals after their separation from service by retirement which continues at least until death. An option for a lump sum payments or payments does not disqualify the retirement nature of the plan as long as the other provisions are provided; and 
• The plan does not permit the distribution of program benefits to any employee until termination of employment except for incidental disability benefits or the return of the employee’s previously taxed contributions and income or gains if the employee is required to contribute to the pension plan. 

Generally, eligible Pennsylvania retirement plans include qualified pension plans under Section 401(a) of the Internal Revenue Code (defined benefit plans and defined contributions plans), IRAs (individual retirement accounts and annuities), Roth IRAs, Simplified Employee Pension Plans (SEPs), and Keogh plans. 

For a plan that is not an employer provided plan and has no specific retirement criteria, such as an IRA, the qualifying retirement age is the period after which a distribution will not be subject to penalty for early withdrawal for Federal Income tax purposes (such as age 59½, death, disability).

If you are still unsure, perhaps you should call the pension administrator and ask them if they are an eligible plan.  Or you can mark it as a taxable plan and pay tax on the distribution.