Not correct ThomasM125. The earnings on a Roth account are not taxable in Massachusetts -- neither when earned nor when withdrawn -- provided the account is at least 5 years old and the taxpayer is at least 59 1/2 years old.
From the state website ( https://www.mass.gov/service-details/view-non-government-pensions#:~:text=Roth%20Individual%20Retire.... ) "
Excluded from your Massachusetts gross income for the year paid:
- Income you earned on the contributions while in the Roth IRA account
- Distributions from a Roth IRA account made to you are excluded from federal gross income. A distribution is excludable if the IRA is held for 5 years and it meets 1 of the following conditions:
- You were at least 59 and a half years old when it was distributed
- You are disabled
- The distribution is made to a beneficiary or your estate on or after your date of death
- The distribution is paying for a qualified first time homebuyer expense (up to $10,000)
(If a distribution is made before the 5-year holding period expires, or doesn't meet 1 of the 4 above conditions, the distribution is not excluded from Massachusetts gross income. Any earnings on the contributions are included in federal and Massachusetts gross income instead.)
