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Mom4x
Level 2
March 15, 2024
Question

What state for Non-qualified pension plan payment

  • March 15, 2024
  • 3 replies
  • 12 views

I entered a W-2 for a non-qualified pension distribution. The pension is from a NY corporation but I live in AZ. When TT asks "Yes, I took this money out of my non-qualified pension or 457 plan", which state do I select? 

    3 replies

    B
    BillM223
    Level 15
    March 15, 2024

    Arizona.

     

    Pensions are taxed by the state where you live, not by the state where the pension is coming from.

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    M
    Mom4xAuthor
    Level 2
    March 18, 2024

    Yes, I know the DISTRIBUTION is taxed as ordinary income where I reside, but TT asks for a state designation (I’ve already entered my AZ info in the program) and I think the program is assuming it was from a (state) 457 plan… but it’s not. It’s a top hat non qualified pension plan. I have had this income for many years and this is the 1st year TT asking for a state…

    CatinaT1
    CatinaT1
    Level 15
    March 21, 2024

    Select Arizona.

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