Does anyone know if PA has mandatory state income tax withholding on lump sum 401(k) distributions? I've looked and looked and can't seem to find the answer to this - Thanks!

Pennsylvania does not have mandatory state withholding for 401(k) distributions.

Wow! This is eerie! I just printed a sheet off from the 2000 ASPA conference that details the State Income Tax withholding for all states! PA states that there is a mandatory State withholding of 2.8% from the gross distribution amount. I can try to e-mail you a copy of this page...it's in my Acrobat Reader software with which I'm not really proficient! Let me know if you want a copy with all States shown

According to CIGNA, there is no mandatory state withholding for Pennsylvania, but of course they may be wrong.

http://www.cigna.com/professional/pdf/CPA_iidw0201.PDF

W. Myer - I have the Qualified Retirement Plan Distribution Request file if you would like me to e-mail it to you also. It is seven pages and page #7 shows a chart with the State Withholding policies. Again, it came from the 2000 ASPA conference in Washington D.C. & I think ASPA is pretty good about being sure that the info we receive is in good order and accurate (although I know everyone is human and can make mistakes!)

Yes, please e-mail me a copy. (You can click on my profile.) Thanks!

I would really like a copy too, please send to sglehto@yahoo.com. Thanks for your responses!

Pennsylvania does not ordinarily tax any "old age retirement penstion". the open question is what triggered the lump sum distribution. If it is subject to Section 72 10% penalty for early distribution, then likely subject to PA withholding. Otherwise no withholding required.