State Tax on IRA?
When taking out a normal distribution from an IRA after age 59 1/2 do you have to pay state tax too for the state of PA?
When taking out a normal distribution from an IRA after age 59 1/2 do you have to pay state tax too for the state of PA?
Permalink Submitted by mk foss on Tue, 2014-03-04 01:41
PA does not allow a deduction for amounts deferred into a 401k plan – which creates basis for the retiree. If the rules for IRAs are similar, there would be tax on the IRA distriubtion but there should be a basis recovery also. Go to the PA website and search for the instructions for the 2013 return as they apply to retirement distributions.