Are my employer-sponsored retirement plan distributions taxed by Pennsylvania?

Generally, your retirement distribution is NOT taxed by Pennsylvania if it meets two requirements:

• You received it from an eligible employer-sponsored retirement plan, and
• You received it after you qualified for retirement and retired.

The following kinds of retirement income are also NOT taxable if they come from an eligible employer-sponsored retirement plan:

• Distributions from an employer-sponsored deferred compensation plan that represent your previous contributions.
• Payments paid to the estate or designated beneficiary upon an employee's death are not taxable income on the employee's final Pennsylvania return or on the beneficiary's Pennsylvania return
• All distributions (regardless of the distribution code reported in Form 1099-R, Box 7) from the State Employees' Retirement System, the Pennsylvania School Employees' Retirement System, the Pennsylvania Municipal Employees' Retirement System, and the U.S. Civil Service Commission Retirement Disability Plan
• Retired or retainer pay of a member or former member of a uniform service computed under Chapter 71 of Title 10, U.S. Code as amended.

All other amounts you receive from your eligible employer-sponsored retirement plan that aren't exempt as explained above are taxable on your Pennsylvania return.

I have retirement income that isn't from an employer-sponsored plan. Is it taxable?