Jonathan, i am so sorry you have to make these unexpected plans due to this horrible diagnosis . I have followed your column and read your books. I value your opinion more than anyone else who writes about financial planning. I am so glad you have the support of a loving family and that they have the reassurance from your planning that they will not suffer financially in the future. I see Greg in church and I'm sure that he is a great source of support for you too. I will keep you in my prayers.
The PA state website has updated information now.
This is what I found: If you invested in a retirement annuity that is not part of an employer-sponsored program or a commonly recognized retirement program, you have Pennsylvania-taxable income when you begin receiving annuity payments. You must report the difference between the amount you receive and your previously taxed investment as taxable gain on a PA-40 Schedule D, Sale, Exchange, or Disposition of Property. If you receive periodic payments, you use the cost-recovery method to report the taxable gain.
Social Security and IRA/Pension distributions are not taxable in PA. Several articles and the state website led me to believe that annuity payments are taxable. Do you have information on this issue?
Comments
Jonathan, i am so sorry you have to make these unexpected plans due to this horrible diagnosis . I have followed your column and read your books. I value your opinion more than anyone else who writes about financial planning. I am so glad you have the support of a loving family and that they have the reassurance from your planning that they will not suffer financially in the future. I see Greg in church and I'm sure that he is a great source of support for you too. I will keep you in my prayers.
Post: Looking Different
Link to comment from July 6, 2024
The PA state website has updated information now. This is what I found: If you invested in a retirement annuity that is not part of an employer-sponsored program or a commonly recognized retirement program, you have Pennsylvania-taxable income when you begin receiving annuity payments. You must report the difference between the amount you receive and your previously taxed investment as taxable gain on a PA-40 Schedule D, Sale, Exchange, or Disposition of Property. If you receive periodic payments, you use the cost-recovery method to report the taxable gain.
Post: An Annuity Instead?
Link to comment from December 30, 2023
Social Security and IRA/Pension distributions are not taxable in PA. Several articles and the state website led me to believe that annuity payments are taxable. Do you have information on this issue?
Post: An Annuity Instead?
Link to comment from December 30, 2023