U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 04-02-2010, 03:08 PM
 
20,190 posts, read 22,337,012 times
Reputation: 9260

Advertisements

I am looking over a W-2 form and it lists the Federal Wages in Box 1 and then State Wages in Box 16... There is a 4k gap... The gap is because my Federal wages don't include my contribution to a 403B... so I am asking, can PA tax my 403B contribution??
Rate this post positively Reply With Quote Quick reply to this message

 
Old 04-02-2010, 04:06 PM
 
20,190 posts, read 22,337,012 times
Reputation: 9260
Okay, so I called up the Payroll department and asked them why PA is taxing my 403b retirement contribution and they said, that's what PA does... huh? Is this right? I have lived in many other states with 401k and 403b plans and they have never been taxed by the state... does that mean my 403b PA is NOT taxed when I pull out the money? Otherwise it would be taxed TWICE... which is illegal... does anyone know? The Payroll guy was like, well "I don't know what happens when you start to withdraw from it."... I can't believe this.. I can't believe that you will be taxed twice with PA...
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-02-2010, 08:49 PM
 
9,845 posts, read 21,174,185 times
Reputation: 7710
Surely somewhere in the bowels of the PA Revenue website you'll be able to find out what PA says about 403b's. I noticed PA seems to have some funky rules about stuff.

Just glad I use turbotax as I would flipping lose it if I had to do it all by hand anymore.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-02-2010, 10:11 PM
 
20,190 posts, read 22,337,012 times
Reputation: 9260
I look in the bowels of the PA revenue site, I googled it... NOTHING.. nada.. zip... I even called up PA tax operator... 99.9% of the time its a busy signal.. its like they have one person to answer phone calls who leaves it off the hook so she don't have to answer any questions... so I figure "somebody" must know... I mean it must be statewide.. I figure there must be millions of people in PA who have 403b/401k plans... I figure they would know if its being taxed or not by the state of PA... or perhaps I am the first person to question it since I am seeing it in my W-2 statement... Payroll department seems to think its legit that the state taxes retirement contributions from pretax income... defeats the whole purpose of "pretax" contributions...
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-02-2010, 10:21 PM
 
20,190 posts, read 22,337,012 times
Reputation: 9260
NM... Had to look up 401k instead of 403b... it says this...

" Unlike the federal income tax law, contributions to a 401(K) or contributions to other types of retirement plans are considered part of the employee's taxable compensation and are subject to withholding requirements. The contributions are treated the same, whether made inside or outside a cafeteria plan.

However, when you retire and start receiving distributions, the amount you withdraw from your 401K plan is not subject to PA Personal Income Tax."

That means it is state tax free during distribution... hmm... so its basically a Roth IRA... weird that PA gets to do this...
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics

All times are GMT -6. The time now is 11:41 AM.

© 2005-2022, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top