PA income tax on pension

MarlinTT — Wed, 05 Feb 2025 03:30:41 GMT

Submitted this to PA Department of Revenue, but no answer yet:

In 2024, I was required, because of my age (72), to begin taking Minimum Required Distributions on my pension from my company, although I was still employed full time by them for the entire year. To state it again, I was receiving payments from my pension while I was still employed (not retired) by the company that was giving me pension payments, and these were not early distributions. Am I required to pay Pennsylvania state tax on these pension payments? I understand that PA assigns different categories to different situations in this regard. If true, what category would I belong to? If the category is designated with a letter or number, please provide that, but also provide the title/description of the category, if possible. I'm trying to select from a TurboTax drop down menu. Thank you.

Re: PA income tax on pension

BillM223 — Wed, 05 Feb 2025 19:51:42 GMT

Probably not.

First you should read what Pennsylvania says about pension taxation. See "How do I know if the amount on my 1099R (1099-R) is taxable on my PA Personal Income Tax Return?"

Here are most of the pension entries:

(The entries not listed are Charity and some ESOP entries)

If indeed, this distribution is from an ordinary run-of-the-mill 401(k) or similar company pension, you would enter "I'm eligible; plan's eligible (no PA tax)". Of course, if one of the other entries better describes your situation (PA state, school, or muni pension, etc.), use that instead.

If you are really concerned, contact your pension administrator and ask if your pension is taxable in Pennsylvania, i.e., that it meets the requirements in "What is a qualified pension program?"

topic PA income tax on pension in Retirement tax questions

PA income tax on pension

Re: PA income tax on pension