Pennsylvania Inheritance Tax on Retirement Accounts

Pennsylvania exempts IRAs, 401(k)s, 403(b)s, and most qualified retirement plans from inheritance tax if the decedent died before reaching age 59½.

The age-59½ cliff

On the day the owner turns 59½, the entire account becomes taxable at the beneficiary's relationship rate. Pre-59½ deaths transfer the account tax-free.

Roth IRAs

Roths get the same treatment. A Roth conversion at age 60 buys federal tax efficiency at the price of PA inheritance tax exposure — coordinate both.

Beneficiary designations

Never name 'the estate' on a retirement account in PA. It strips the exemption and forces the asset through probate.

Tied into the main inheritance tax guide.