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boringreddituserid t1_j52539x wrote

401K contributions are taxed in PA. Distributions, including all gains are not taxed by PA.

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flaaaacid t1_j528xdd wrote

Are they using PA's definition of taxable income for a federal program? I doubt it.

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[deleted] t1_j529qnv wrote

Which is a shame in my opinion. I don’t think people should be penalized for doing something responsible like saving for retirement.

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boringreddituserid t1_j52d64p wrote

Think of it more like a Roth 401K for PA purposes. I’m retired and it’s nice not paying PA tax or local income tax.

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