401k withdrawal

Forum|Forum|1 year ago
March 21, 2025
14 replies
72 views

When completing my tax forms i noticed that the amt of my non penalty 401k wd income carried over to the state form and plugged in a 20k subtraction under pension and annuities(pension and annuities income exclusions for local , state federal pensions) I don't believe I am eligible for this subtraction as this is not a pension (it is a 401k savings acct). I tried 2 different tax programs with the same affect. While it looks great as I would get alot more in a return, I dont wish to be penalized for the 1k difference if it is wrong . This.is for Nys

401K

DaveF1006

Level 15

To clarify, what state?

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Laf923 Author

Level 2

New york

Laf923 Author

Level 2

I posted the NY rules. As you can see the rules vary but a lump sum from a Keogh qualifies along with inherited accounts that would have qualified. If you had a 403b, then it would need to be periodic.

I am not sure if you income is even taxable in NY. Your pension income is not taxable in New York State when it is paid by:

New York State or local government
the federal government, including Social Security benefits
certain public authorities

What kind of retirement (401k, 403b, etc) plan from what type of employer (government or private) do you have? Let's solve the riddle!

It is a 401k with my former employer(a bank). I know in the past I paid taxes to the state for funds received from my 4401k. The exemption that appeared this time wasn't in play back in 2022 or may not have been based off of the fact that I withdrew funds under the rule of 55. Having not ever seen this nys subtraction_exemption is what made me question and was told multiple times it applied. I dont even know how to amend this at this point if I have to because everything carried over from the federal form. All I did was indicate the 401k funds and it automatically transferred to the state. I couldn't find any place where I needed to check or unchecked a box to remove it. But obviously I had to have checked something off that applied this exemption.