If I retire to a state that taxes retirement distributions, is my basis exempt since I already paid PA state tax on 100% of contributions to my retirement account?

shinnroy · ‎April 7, 2023

BillM223 · ‎April 7, 2023

That would be true in Pennsylvania, but tell us the state so we could see if that state would honor the basis.

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shinnroy · ‎April 7, 2023

KY

JamesG1 · ‎April 9, 2023

Kentucky excludes the less of 100% of taxable retirement benefits or $31,110. The exclusion is for each taxpayer. Spouses calculate the exclusion separately.

The TaxBook page KY-3 states:

@shinnroy

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shinnroy · ‎April 11, 2023

Still a large amount of income that is taxed by both states. ☹️

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If I retire to a state that taxes retirement distributions, is my basis exempt since I already paid PA state tax on 100% of contributions to my retirement account?