Are my employer-sponsored retirement plan distributions taxable?
Generally, your retirement distribution is NOT taxable if it meets two characteristics:
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.