How do I determine the amount of taxable IRA distribution in Massachusetts?
Non-Roth IRA distributions received by a full-year and/or part-year resident are not taxed in Massachusetts until the original contributions that were previously taxed by Massachusetts are fully recovered. Only those contributions that have been made by taxpayers while Massachusetts residents are considered. Nonresidents are not subject to tax on these distributions, nor are they taxed on rollover amounts into Roth IRAs in Massachusetts. Massachusetts follows the federal rules concerning rollovers from existing IRAs to Roth IRAs. However, similar to the Massachusetts treatment of IRA distributions, the amount includible on the Massachusetts return by a Massachusetts full-year and/or part-year resident will only include the amounts in excess of the original contributions that were previously taxed by Massachusetts. Worksheets are available in the Form1 and Form1-NR/PY Instructions. A more in-depth explanation of IRA/Keogh Plan and Roth IRA conversion distributions and examples for filli
Non-Roth IRA distributions received by a full-year resident are not taxed in Massachusetts until the original contributions that were previously taxed by Massachusetts are fully recovered. Only those contributions that have been made by taxpayers while Massachusetts residents are considered. Massachusetts follows the federal rules concerning rollovers from existing IRAs to Roth IRAs. However, similar to the Massachusetts treatment of IRA distributions, the amount includible on the Massachusetts return by a Massachusetts full-year resident will only include the amounts in excess of the original contributions that were previously taxed by Massachusetts.
Related Questions
- Why did I receive Form 1099-R showing the distribution from my IRA/tax-qualified retirement plan as being taxable when I indirectly rolled it over to another eligible retirement plan?
- Are there any circumstances when a taxable distribution taken from my IRA before age 59 will avoid the 10% penalty?
- How do I determine the amount of taxable IRA distribution in Massachusetts?
