topic Colorado State Tax question-Pension & Annuity Subtraction in After you file

Colorado State Tax question-Pension & Annuity Subtraction

4LESSTAXES — Mon, 09 Mar 2026 09:21:27 GMT

Colorado State allows a partial subtraction for pension and annuity income. I took a distribution from my 401k. Would that qualify for the subtraction?

Re: Colorado State Tax question-Pension & Annuity Subtraction

ErnieS0 — Wed, 02 Mar 2022 04:32:16 GMT

401(k) withdrawals do qualify for Colorado pension and annuity subtraction, unless it is a premature distribution from a self-employed retirement account plan such as a solo 401(k). Premature distributions from an employer plan will qualify.

All normal 401(k) distributions will qualify.

See Colo. Code Regs. 39-22-104(4)(f)

Re: Colorado State Tax question-Pension & Annuity Subtraction

4LESSTAXES — Thu, 03 Mar 2022 03:59:34 GMT

Thank you for your response, but I wanted to clarify my question to be sure. I am 61 years old and I have not retired from my job yet. In 2021 I took a withdrawal from my employer 401k plan. Does that still qualify me for the Pension & Annuity Substraction on my Colorado State tax return.

Re: Colorado State Tax question-Pension & Annuity Subtraction

JohnW152 — Thu, 03 Mar 2022 13:58:26 GMT

Yes, the distribution qualifies for the subtraction on your Colorado return.