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

vote up

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.

add a comment

vote up

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.

add a comment

You have 50 words left!