Question by  shoog (38)

Are there any states that do not tax pension funds or 401K retirement funds?


Answer by  patti (29325)

Pension funds and 401K retirement funds are taxed according to the U. S. Tax Code, not the state. FYI, a Roth IRA has taxes paid before investment.


Answer by  tamarawilhite (17883)

Yes, there are. If you live in a state that does not have an income tax, you do not pay state income taxes on pension plan distributions, 401K tax distributions, or Roth IRA distributions. Federal income taxes are still owed.

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