State taxation of 401K contributions?
Posted 12 March 2002 - 12:47 PM
Contributions should be pre-tax (unless owner specified) under both Fed and State taxation...correct?
Posted 12 March 2002 - 01:31 PM
The issue is some states do not automatically conform to new IRS laws. These states may not recognize the increase in limits for deferrals, catch-up contributions for over age 50, etc.
Posted 12 March 2002 - 01:50 PM
Posted 12 March 2002 - 04:52 PM
the flip side benefit is that when funds are distributed from a qualified plan to a Pa resident the distribution is not taxed.
Posted 16 March 2002 - 04:28 PM
I am not aware of any other states that tax 401(k) contributions (for reasons not related to EGTRRA). Last time I checked there were municipalities in Ohio that taxed them and (if my memory is correct) some transit authority in Oregon. [ I do not pretend to have any expertise re: Orgeon tax rules.]