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Regarding PA income taxes, an early withdrawal from a retirement account by a PA resident is taxable to the extent that the withdrawal exceeds your basis in the retirement account.
Your basis is the sum of all your contributions (do not count earnings or any employer contributions) less the sum of all distributions taken in previous years. You may need to contact the plan administrator if you have not been keeping good records.
Essentially, you get your contributions back first tax free, anything above what you personally contributed is taxable if taken as an early withdrawal (1099R, box 7, coded 1 or 2)
For a withdrawal from a 401k tax deferred retirement account, the taxable amount withdrawn is entered on your tax return as ordinary income and taxed at your current tax rate. If you are under the age for an early withdrawal exception then there is a 10% early withdrawal penalty assessed on your federal Form 1040 as a tax liability.
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