Retirement tax questions
The MA Department of Revenue website states the following regarding Roth IRA distributions for anyone under the age of 59-1/2:
"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.)
However, and to follow-up on your previous post, the MA Department of Revenue also states the following:
"To prevent double taxation, Massachusetts allows a tax deduction for IRA distributions up to the total amount of already-taxed contributions."
In your MA section of TurboTax, you should see the following page, or a similar page, which will allow you to enter that portion of your Roth IRA distribution that was previously taxed income.
