State Income Taxes - 401k Withdrawals

Submitted by d-greer@comcast.net on Sat, 02/15/2020 - 19:37

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State Income Tax

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.

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d-greer@comcast.net

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.

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dan royer's picture

dan royer

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.

YOu didn't want to use MaxiFi Planner? https://maxifi.com

Dan

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