Would Pennsylvania tax my rollover IRA withdrawal if I invest it into an annuity?

by Paul K. Rudoy, CPA | Apr 28, 2017

I'm planning on taking money out of my rollover IRA (Fidelity) and investing in a Fidelity annuity. How would Pennsylvania income tax treat this? I'm aware that I will still need to take out the required minimum distribution from the leftover portion of my IRA.

Pennsylvania does not tax withdrawals from retirement accounts after a taxpayer reaches retirement age and is retired.

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Answered by: Paul K. Rudoy, CPA, PFS, is managing partner of H2R CPA in Pittsburgh.

The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
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