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Level 3

Retirement income for PA tax form

How do I know which to check:

   I'm eligible, plan's eligible (no PA tax) ---or---

   Traditional or Roth IRA, I'm over 59.5 

1 Reply
Level 18

Retirement income for PA tax form

In Pennsylvania, retirement income is generally not taxable IF you had reached the full retirement age under the plan. Note that this is not a specific age like 55 or 60 or 62 or whatever, but it is the age specified in the plan.

 

Therefore you need to contact your plan administrator and ask

1. if your plan is qualified in Pennsylvania (see https://revenue-pa.custhelp.com/app/answers/detail/a_id/433/related/1/session/L2F2LzEvdGltZS8xNTcwMD... ), and

2. did you retire "AFTER meeting the eligibility requirements for separation from service by retirement based on old age, infirmity, long-continued service, or a combination of old age and infirmity and long continued years of service?" See https://revenue-pa.custhelp.com/app/answers/detail/a_id/364/~/do-i-have-to-pay-pa-income-tax-on-my-r... 

 

If your plan is eligible and you meet the plan's requirements for full retirement, then you can answer "plan's eligible (no PA tax)" which will remove the pension income from your Pennsylvania taxable income.