How do I make 1099-R totals non-taxable on PA return?

[therockstaraccountant]

Hi All - 

TP has a $25k early 401k distribution that's exempt from the early WD penalty due to a QDRO. 

401k distributions are usually non-taxable in PA because PA doesn't allow tax deferral of contributions. Early wd are exceptions but withdrawal of contributions should still be nontaxable, even before we get to the QDRO. However, ProConnect is still showing $25k as taxable on PA return. 

How do I get ProConnect to make this non-taxable for the PA return? 

TIA ... 

[itonewbie]

---

@therockstaraccountant wrote:

401k distributions are usually non-taxable in PA because PA doesn't allow tax deferral of contributions...

---

This is not a correct statement because PA does have specific conditions for this treatment.

---

Early wd are exceptions but withdrawal of contributions should still be nontaxable, even before we get to the QDRO.

---

You seem to recognize some of the prerequisites.

---

How do I get ProConnect to make this non-taxable for the PA return?

---

But if you do, why would you say that this should all be nontaxable?  What is your basis for treating it all as nontaxable?

[qbteachmt]

"but withdrawal of contributions should still be nontaxable"

Regular 401(k) or Roth 401(k)? I don't think 401(k) has ordering rules.

"even before we get to the QDRO."

I would say QDRO is the first consideration. Was it rolled into a qualified account for the other party?