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April 8, 2022
Question

PA Tax on pensions and 401K rollover account

  • April 8, 2022
  • 1 reply
  • 0 views

Turbotax (PA) is indicating that I need to pay PA tax on my pension and my 401K rollover account (which has been reinvested).  My understanding of the PA tax rules is that these two things are not taxed under distribution codes 7.  What might I be doing wrong?

    1 reply

    April 8, 2022

    An eligible Pennsylvania retirement plan is not taxable if you met the plan requirements (the age and/or years of service required by the plan) for retirement and retired after meeting those requirements.

    You will have to indicate in the PA section that you met these requirements.

     

    Here's how:

    1. Start Pennsylvania
    2. Continue to What kind of retirement income do you have from Pennsylvania?
    3. Select I'm eligible, plan's eligible (no PA tax) 

    How do I know if the amount on my 1099R (1099-R) is taxable on my PA Personal Income Tax Return?

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