Colorado Retirement Pension or Annuity Subtraction / Roth IRA

Yes, taxpayers who are 65 years of age or older as of the last day of the tax year can subtract the smaller of $24,000 or the taxable pension/annuity income included in federal taxable income.

Maryk4

Thanks for your quick reply... in a more detailed fashion, ...

my question has a focus on the origin of the money...

If the origin of the IRA funds [converted to Roth] were stocks and bonds... and not "pensions or annuities",     can the $24k be deducted?

In general, the pension and annuity subtraction may be claimed for the following types of income included in an individual’s adjusted gross income and reported on their federal income tax return (IRS Form 1040 or 1040-SR) for the same year the subtraction is claimed:

• pensions and annuities reported on line 5b of the federal return;
• Social Security benefits reported on line 6b of the federal return;
• certain IRA distributions reported on line 4b of the federal return; and
• disability payments reported on line 1h of the federal return because the recipient has not yet reached retirement age.

CO Department Of Revenue