Is there a PA STATE penalty on early 1099-R withdrawal?
How old is your husband? Most states that have an income tax allow a certain amount to be taken out of a pension/IRA tax free before taxing the balance.. This assumes the distribution was taken after reaching normal retirement age.. (usually 59 1/2, some states allow tax free distributions at 55 if retired from service and also if the distribution is coming from an inherited IRA).. The amount allowed to be withdrawn tax free from a state can vary depending on if the pension is a state pension or from a private company..The 10% penalty is usually levied at the federal level, its usually only taxed by the state (if there is an income tax in the state you live in, FYI, PA does tax income).. Go to your states web site
