If your 1099R, box 7, is coded as a 1 or 2, that means that your retirement plan says you have not met the normal retirement age for the plan. Each employer and plan defines those parameters so different companies may have different ages for normal retirement. The distribution is then taxable to the extent it exceeds your basis in the plan. If box 7 is coded 7, it is not taxable in PA, you've met the requirements for normal retirement. Basis is total of your contributions (not employers or earnings) less any previous distributions from that plan.
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