boringreddituserid t1_j5258mg wrote on January 19, 2023 at 9:32 PM

Reply to comment by KREDDOG79 in Any way to legally reduce household income in Pennsylvania through charity/donations? by erock255555

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

I don’t think charitable contributions are deductible either.

KREDDOG79 t1_j525od6 wrote on January 19, 2023 at 9:35 PM

This would be why I suggest finding a CPA

boringreddituserid t1_j52da5h wrote on January 19, 2023 at 10:25 PM

Absolutely.

[deleted] t1_j52qxea wrote on January 20, 2023 at 12:04 AM

[deleted]

sandmanrdv t1_j536jwh wrote on January 20, 2023 at 1:55 AM

The only way 401(k) or other qualified retirement plan contributions would be taxed is if we are talking about a Roth Plan.

boringreddituserid t1_j538rpj wrote on January 20, 2023 at 2:11 AM

That’s not correct. Many states including Pa tax the contributions, but withdrawals are tax free. Whereas other states don’t tax contributions, but do tax withdrawals.

sandmanrdv t1_j53bhus wrote on January 20, 2023 at 2:31 AM

Ah we’re talking state income tax here. I stand corrected.

Jumpy-Natural4868 t1_j5hh9bl wrote on January 23, 2023 at 1:03 AM

Correct OP could fund a 529. That's PA.tax deductable. Up to $15k per person for tax year 2022 until April 15.