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Early Withdrawal Rules For Ira In Philadelphia
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Multi-State
County:
Philadelphia
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US-001HB
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FAQ
IRAs and 401K retirement accounts of a non-disabled person who died before attaining age 59 ½ are not subject to Pennsylvania inheritance tax. If the person died before attaining age 59 ½ but was disabled, then the IRA and 401K are subject to Pennsylvania inheritance tax.
(updated Dec. 10, 2024) You must take your first required minimum distribution for the year in which you reach age 73. However, you can delay taking the first RMD until April 1 of the following year. If you reach age 73 in 2024, you must take your first RMD by April 1, 2025, and the second RMD by Dec. 31, 2025.
If you retire before the age of 59 1/2, distributions received before age 59 1/2 are taxable to PA even if the distributions qualify to be exempt from the penalty for early withdrawal on your federal return.
Distributions of your contributions to a traditional or Roth IRA are not taxed by Pennsylvania.
A Roth IRA allows you to withdraw your contributions at any time—for any reason—without penalty or taxes. For example: If you contributed $12,000 over 2 years and your Roth IRA has grown to $13,200, you can take out the original $12,000 without taxes and penalties.
To discourage the use of IRA distributions for purposes other than retirement, you'll be assessed a 10% additional tax on early distributions from traditional and Roth IRAs, unless an exception applies.
Use Form 5329 to report distributions subject to the 10% additional tax on early distributions from a qualified retirement plan, including traditional IRAs. If you received a distribution that meets an exception, but box 7 on Form 1099-R doesn't show an exception, use Form 5329 to indicate the correct exception.