kaycee3390
Junior Member
My daughter was named beneficiary of a traditional IRA when her aunt, a Florida resident, died in 2000. We live in NJ. A lump sum distribution was made in December 2005--approximately $8000--all of which is subject to federal taxation. In early June 2005, my daughter graduated from a Pennsylvania college and decided to stay and live in Pennsylvania. Is this distribution subject to any state taxation in Pennsylvania? I have searched all information and it appears that with a distribution code of 4 on the 1099-R it is not taxed in PA, but is there something I am missing or perhaps another tax I am not aware of? It is also confusing because she is our dependent for 2005 and actually spent about half the year in NJ and the other in PA.
