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February 17, 2025
Question

PA State Tax Basis

  • February 17, 2025
  • 1 reply
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In determining my PA State Tax basis with respect to an early withdraw from my 401K, is it the sum of ALL my contributions ever made (over 38 years of employment) or is it just the amount of employee contributions for this withdrawal in 2024?

    1 reply

    February 17, 2025

    It would be all of your contributions for those made while you were a resident of Pennsylvania (PA). Only earnings would be required to be taxed if the withdrawal is before retirement age. Any withdrawals at or after retirement are completely tax free  for your PA state return.

     

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