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March 25, 2025
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State tax on IRA withdrawals

  • March 25, 2025
  • 1 reply
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Withdrawals from Rollover IRA and Traditional IRA are supposed to be taxed the same way.

Preparing my taxes with desktop TurboTax - state tax return, Pennsylvania.

If I select "Traditional or Roth IRA, I'm over 59.5" my owed tax calculation remains at zero.

If I select "Rollover" my owed tax increases over $1,000.

    Best answer by DavidD66

    If you select "Traditional or Roth IRA..." the program doesn't yet know if the distribution in taxable or not, and if taxable how much of it is taxable.  It could be a Roth IRA that is not taxable or a Traditional IRA with non-deductible contributions.  You have to finish entering the Form 1099-R and then go through all the questions by clicking on Continue once you see the Summary page.  

    1 reply

    DavidD66Answer
    March 25, 2025

    If you select "Traditional or Roth IRA..." the program doesn't yet know if the distribution in taxable or not, and if taxable how much of it is taxable.  It could be a Roth IRA that is not taxable or a Traditional IRA with non-deductible contributions.  You have to finish entering the Form 1099-R and then go through all the questions by clicking on Continue once you see the Summary page.  

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