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Level 1
posted Mar 25, 2025 8:37:30 AM

State tax on IRA withdrawals

Withdrawals from Rollover IRA and Traditional IRA are supposed to be taxed the same way.

Preparing my taxes with desktop TurboTax - state tax return, Pennsylvania.

If I select "Traditional or Roth IRA, I'm over 59.5" my owed tax calculation remains at zero.

If I select "Rollover" my owed tax increases over $1,000.

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1 Best answer
Expert Alumni
Mar 25, 2025 9:33:18 AM

If you select "Traditional or Roth IRA..." the program doesn't yet know if the distribution in taxable or not, and if taxable how much of it is taxable.  It could be a Roth IRA that is not taxable or a Traditional IRA with non-deductible contributions.  You have to finish entering the Form 1099-R and then go through all the questions by clicking on Continue once you see the Summary page.  

1 Replies
Expert Alumni
Mar 25, 2025 9:33:18 AM

If you select "Traditional or Roth IRA..." the program doesn't yet know if the distribution in taxable or not, and if taxable how much of it is taxable.  It could be a Roth IRA that is not taxable or a Traditional IRA with non-deductible contributions.  You have to finish entering the Form 1099-R and then go through all the questions by clicking on Continue once you see the Summary page.