State Income Taxes - 401k Withdrawals
When 401k withdrawals start for me, I see that Federal Income taxes in ESPlanner goes up which I would expect. However, the state income taxes are zero. Why would that be the case? I live in Illinois and I would expect to pay state income taxes on the 401k withdrawals.
Sat, 02/15/2020 - 20:17
Well, I just saw some
Well, I just saw some information online that indicates that Illinois residents do not pay state income tax on 401k distributions. I guess that explains it.
Sat, 02/15/2020 - 20:18
I could look at this in
I could look at this in MaxiFi planner but would need your database to see in ESPlanner and it's sometimes difficult to peer into those state tax rules, which can be complex.
I believe the state tax code for IL is correct. But I could ask if there are any recent changes.
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