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Retirement tax questions
Not correct DianeC958 -- you don't include contributions to a Roth. Basis in Roth is irrelevant because (a) all contributions to a Roth are post-tax money and (b) all withdrawals from a Roth of both contributions and investment gains are not taxable as long as you wait until you are past age 59 and the account has been open at least 5 years. The problem is a program bug that incorrectly treats Roth withdrawals as taxable on the state if the custodian has entered code T on box 7 of the 1099-R, rather than Q.
Entering past contributions to the Roth would not fix the problem, because Turbotax would still tax you at the state level on your earnings in the Roth when withdrawn, contrary to Massachusetts tax law.
March 25, 2021
10:04 AM
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