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emc011075, Tax adviser
Category: Tax
Satisfied Customers: 3173
Experience:  IRS licensed Enrolled Agent and tax instructor
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I am a PA resident. i received an 80K payoff fro my contract

Customer Question

hi.... I am a PA resident. i received an 80K payoff fro my contract - 53K went to my 403 b and 7750 to my HSA. Is the remaining 19250 subject to state, locak. and Soc. sec. /medicare, or is the total 80K?
JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?
Customer: Yes - I have a check here and I must determine if it is correct. The check out of all the info above is $7337.15. It appears that they taxed about 5-6K too much, that is why I am asking. Is the 80K or the 19250 subject to state, locak and soc, security, based ont he info provided above?
JA: OK. Got it. I'm sending you to a secure page on JustAnswer so you can place the $5 fully-refundable deposit now. While you're filling out that form, I'll tell the Accountant about your situation and then connect you two.
Submitted: 1 year ago.
Category: Tax
Expert:  emc011075 replied 1 year ago.

Hi. My name is ***** ***** I will be happy to help you.

Contribution to HSA is not subject to any taxes. It is completely excluded from the income. Contribution to your 403 is subject to Social security, Medicare and local tax but not to state and federal income tax.

You will pay federal and state taxes when the funds are distribution from your 403B. At that point the distribution will not be subject to SS, Medicare or local taxes, just state and federal income tax.

Expert:  emc011075 replied 1 year ago.

I see you read my respond. Do you have any questions? Is there anything else I can help you with today?

Expert:  emc011075 replied 1 year ago.

I see you offline now. So if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. You find the rating bar on the top of the page – 5 stars. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.