Is my pension taxable?

Jul 26, 2016

It is difficult to answer such a broad question. One should consider many points when addressing this question. For instance, the rules for federal and state taxes can be different. In regard to Pennsylvania state income taxes, your pension is not taxed, no matter where it comes from. That might not be true, however, for other states. It’s also important to know the type of pension plan you have: whether it’s one you contribute to or one that’s strictly a benefit plan. In addition, the age you receive your pension also plays a factor in determining its eligibility for tax exemption, as well as disability issues.

Retirement planning is complicated. You can get started by reviewing these PICPA resources. Once you have a basic understanding of the issues, be sure to consult a local CPA who can help you review all the factors that ultimately affect your retirement income.

Answered by: William L. Stunkel, CPA, is is director of small business services with Holsinger PC in Wexford, Pa.

Pennsylvania CPA Journal

Read the latest from the Pennsylvania CPA Journal online or via the mobile app and digital edition.

Read More


Get the latest info on professional trends, management, and leadership skills on CPA Now.

Read More

Premier Sponsors

Platinum Sponsors

Gallagher Bollinger Logo

Silver Sponsors

Paychex logo
Capstan Logo
epsa USA

Bronze Sponsors

Fox School of Business, Temple University

Interested in becoming a sponsor? View packages >