Should I just focus on the money that will be paid into these retirement accounts even though they will eventually become liquid at retirement? Also, how do PA and federal law differ?

All I can really think of with consequences is, like i said, the fact that you have to pay into the accounts/have your employer take money from your paycheck and put them into the accounts.

Thanks in advance for the help

Your thoughts are wandering all over the page getting me confused. I suggest you consult a local tax professional or financial planner because it sounds like you need that instead of the quickie answer you will get here.