I received my retirement paperwork today for my pension benefit choices.
One section pertained to PA state taxes. I have a choice to choose having no taxes withheld on my monthly pension benefit or having 3.07% (PA state taxes) withheld.
Everything I have read about PA state taxes on Megacorp pension benefits is that PA does not collect state tax on pensions. If that is truly correct, why would my pension paperwork offer me the option of having the 3.07% withheld if no state taxes are collected?.
It seems like I would choose 0% withdraw. If I owe state tax I want to pay it upfront but it doesn't seem to me that I need to.
Any other Pensylvania retirees out there? I live in Chester county, East Pikeland township. I normally pay county and township taxes yearly. Will these two taxes also be exempt from paying or not.
Thanks in advance for any input.
One section pertained to PA state taxes. I have a choice to choose having no taxes withheld on my monthly pension benefit or having 3.07% (PA state taxes) withheld.
Everything I have read about PA state taxes on Megacorp pension benefits is that PA does not collect state tax on pensions. If that is truly correct, why would my pension paperwork offer me the option of having the 3.07% withheld if no state taxes are collected?.
It seems like I would choose 0% withdraw. If I owe state tax I want to pay it upfront but it doesn't seem to me that I need to.
Any other Pensylvania retirees out there? I live in Chester county, East Pikeland township. I normally pay county and township taxes yearly. Will these two taxes also be exempt from paying or not.
Thanks in advance for any input.