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Level 1

Why does my RMD IRA amount continues to be shown on Pennsylvania as a taxable amount?

PA schedule A - PA-Taxable interest Income line 11 includes my RMD. My Federal Tax is Ok. It carries over as taxed to Schedule A on PA form.

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Level 11

Why does my RMD IRA amount continues to be shown on Pennsylvania as a taxable amount?

When you were asked ( in the PA interview) what kind of retiremetn plan distribution was represented by the 1099R, you must have chosen "annuity",  which would mean that the 1099R box 7 is coded with a "D" (such as 1D or 7D)  for the income to appear on Schedule A.

If that is not the case, then revisit that section of the interview.  If box 7 is coded a 4 or 7 (without a D), then select "I qualify, plan qualify" so that the distribution is not taxed by PA.

For more info, see:  https://revenue-pa.custhelp.com/app/answers/detail/a_id/1470/related/1/session/L2F2LzEvdGltZS8xNTE5M...

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Level 11

Why does my RMD IRA amount continues to be shown on Pennsylvania as a taxable amount?

When you were asked ( in the PA interview) what kind of retiremetn plan distribution was represented by the 1099R, you must have chosen "annuity",  which would mean that the 1099R box 7 is coded with a "D" (such as 1D or 7D)  for the income to appear on Schedule A.

If that is not the case, then revisit that section of the interview.  If box 7 is coded a 4 or 7 (without a D), then select "I qualify, plan qualify" so that the distribution is not taxed by PA.

For more info, see:  https://revenue-pa.custhelp.com/app/answers/detail/a_id/1470/related/1/session/L2F2LzEvdGltZS8xNTE5M...

Level 11

Why does my RMD IRA amount continues to be shown on Pennsylvania as a taxable amount?

Distributions from an IRA are not taxable if the payments are:

  1. Received, including lump sum distributions, on or after reaching the age of 59 1/2.
  2. Paid to the estate, or designated beneficiary, of the participant by reason of the participant’s death.

Distributions you receive before age 59 1/2, even if you are retired, are taxable even if you receive substantially equal payments, and for federal purposes, you do not pay a penalty for an early withdrawal. Distributions from an IRA, including a federal Roth IRA, are taxable to the extent the distribution exceeds your previously taxed contributions. Further, under the cost recovery method, the taxpayer is required to remove his contributions first and then the untaxed portions.

PA law does not have any exceptions similar to the federal exceptions for withdrawal before age 59 1/2.